JOBS across York and North Yorkshire have been saved as Morrisons beat EG Group in a takeover battle for collapsed retailer McColl’s.

Bosses said all McColl’s staff will keep their jobs as the firm’s shops transfer to the new owner, while Morrisons will take over the company’s two pension schemes.

The convenience chain fell into administration on Friday, plunging the future of its 1,160 shops and 16,000 staff into doubt.

McColl’s outlets in York include premises in Crichton Avenue, Clifton; Hamilton Drive West and Gale Lane, Acomb; Moorcroft Road, Woodthorpe; and Oak Tree Lane and The Village in Haxby as well as stores in Selby, North Duffield and Bubwith.

The UK’s fourth-largest supermarket chain and forecourt giant EG Group both tabled final offers on Sunday to secure a rescue deal for McColl’s.

EG, whose owners - the billionaire Issa brothers - also run supermarket giant Asda, had initially been favourites to complete a rescue deal for McColl’s.

Morrisons’ early approaches had reportedly been rejected by lenders who preferred EG’s offer to instantly repay more than £160 million in debts from McColl’s.

However, it is understood that Morrisons’ successful move will also repay the lenders in cash.

In a statement after the deal was announced, it said that “the secured lenders and preferential creditors will be paid in full with a distribution also expected to unsecured creditors”.

Morrisons had also originally proposed to only save the “vast majority” of job and stores, but improved this offer during the bidding process.

“All McColl’s colleagues will be transferred with the McColl’s business to Morrisons,” the supermarket said.

Morrisons chief executive David Potts said: “Although we are disappointed that the business was put into administration, we believe this is a good outcome for McColl’s and all its stakeholders.

"This transaction offers stability and continuity for the McColl’s business and, in particular, a better outcome for its colleagues and pensioners.

“We all look forward to welcoming many new colleagues into the Morrisons business and to building on the proven strength of the Morrisons Daily format.”

A spokesman for the McColl’s Pension Schemes said: “The trustees welcome the announcement that Morrisons will continue to support the schemes following its acquisition of the McColl’s business.

“The trustees will continue to engage with all stakeholders to ensure that members’ benefits are protected following the completion of the transaction.”

McColl’s filed a notice to appoint administrators from PwC on Friday and formally entered administration on Monday.

Morrisons is currently McColl’s wholesale supply partner and was expected to immediately terminate its deal with the chain if the takeover move proved unsuccessful. McColl’s also runs about 270 stores under the Morrisons Daily brand.

It is understood that administrators were favourable to deal with Morrisons because it was one of McColl’s biggest creditors.

McColl’s collapse followed soaring costs due to supply chain disruption, inflation and its large debt burden.