My Local calls in administrators putting 1,700 jobs at risk

Ashley Armstrong
21 JUNE 2016
Telegraph uk
Convenience store chain My Local, which was created from Morrison’s cast-offs just nine months ago, has filed notice to appoint administrators, putting around 1,700 jobs at risk.
It is understood that KPMG, which has been working with the company for sometime, is waiting in the wings and My Local is expected to formally enter administration next week.
The 140 stores were bought for £25m last September from Bradford-based supermarket chain Wm Morrison, which is now on the hook for a £20m liabilities bill as part of the original sale agreement.
M Local
Morrisons sold off its M Local business, which was then rebranded by Mike Greene’s team to My Local
The sale to retail veteran Mike Greene was backed by investment firm Greybull Capital, which put together the rescue of Scunthorpe steel plant from Tata.
The convenience store chain is thought to have halved its losses from £36m at the time of the deal, but supply chain issues hampered My Local’s chances of survival.
Retail experts had questioned whether it was possible to reverse the convenience businesses’ heavy losses with a scattergun store estate that was largely made up of failed Blockbuster stores.
Earlier this year My Local launched a failed attempt to buy 100 former Somerfield shops from the Co-op.
The convenience market is the fastest growing part of the grocery market and is valued at £37.7bn but it is increasingly crowded as the major supermarkets open mini versions across Britain’s high streets.
The imminent collapse of My Local follows the high profile demise of BHS and adds to the gloom in the wider retail sector.