Convenience store chain goes into administration

My Local was sold to Greybull a year ago by Morrisons and its previous owner has now said that if no buyer for the chain is found, it will offer its former staff jobs at the supermarket.

The 1,650 employees of My Local – previously known as M Local – were briefed yesterday (June 21) on the threat of the company going into administration.

“We are saddened and disappointed to learn that My Local is about to enter administration”. We want to help our former colleagues who now work for My Local.

My Local, led by retail veteran and The Secret Millionaire star Mike Green, bought 140 Morrisons M Local convenience stores for £25m in September previous year.

More than 2,000 jobs are at risk as My Local, which operates 120 stores, has brought in accountancy firm KPMG. However, the chain has struggled to compete in the cut-throat convenience sector with reports suggesting that supply chain problems and poorly located sites has hampered My Local’s progress.

According to a report in The Guardian, a lease obligation guarantee agreed at the time of the September deal has left Morrisons facing a £20m liability if My Local goes under.

Joanne McGuinness, national officer at shopworkers union Usdaw, said My Local staff were “devastated” by the news.

“We are talking with the company in a bid to save jobs and get the best deal for staff”.

Morrisons has since begun a new convenience store experiment with petrol forecourt operator Motor Fuel Group but is not expected to reopen any stores that revert to its control.