MyLocal appoints administrators, further store sales expected

Collapsed convenience store chain MyLocal has appointed administrators from KPMG after closing 90 and selling two of its 125 stores and making hundred redundant, with several other sales close to completion.

Joint administrators Mark Orton and Blair Nimmo said a further three sales are in the process of being closed, with Co-Op earlier reported to have been interested in some purchases, with 32 remaining stores remain open and continue to trade.

Orton, partner at KPMG and joint administrator at My Local, said: “Although the majority of stores have now closed, we are in active discussions with a number of interested parties in relation to both the remaining 32 premises that are trading and a small number of those that have closed.

"We are pursuing these opportunities as a matter of priority in the hope that we will be able to conclude successful sales and safeguard as many jobs as possible.

“We will also work closely with all employees over the coming days, in particular ensuring those who have been made redundant receive the necessary support they need.”

KPMG noted recent figures from the Local Data Company (LDC) that suggested convenience stores were the slowest growing segment in the food and groceries market over the last five years.

The MyLocal chain was created when supermarket group Morrisons sold its 125-strong small-store estate for what was seen as a cut-price £25m to retail veteran and The Secret Millionaire star Mike Green.

As part of the deal, the Yorkshire-headquartered grocer held a guarantee on a number of lease obligations, meaning that they will revert to Morrisons if My Local collapses and reportedly carrying a potential liability of up to £20m to the FTSE 100 group.