Convenience store chain My Local has filed notice to appoint administrators, only nine months after it was spun off from Morrison’s M local stores, putting 1,700 jobs at risk
The chain is expected to enter formal administration next week and KPMG has been lined up to be the administrator for the 140 store business.
KPMG will attempt to sell the business as a going concern but if no buyer can be found then the stores will be sold off in stages.
The stores were bought for £25m last September from supermarket chain Wm Morrison and Morrison’s may now have to pay £20m in liabilities if My Local goes under.
The notice provides protection from creditors for 10 days before the company potentially enters into administration.
M local was sold to Greybull, in a deal headed by Mike Greene for £25m, who then went on to rebrand the stores.
At the time the deal was made they halved the chain’s losses from £36m however, the competitiveness of the convenience sector of the grocery market meant that they struggled to stay afloat.
My Local staff were briefed on the matter on 21 June.
Joanne McGuinness, national officer at union USDAW, said: ‘We are talking with the company in a bid to save jobs and get the best deal for staff. In the meantime, USDAW is providing the support, advice and representation they need at this unsettling time.’
