1,700 jobs under threat as convenience store chain falters

SOME 1,700 jobs are at risk at the convenience store group My Local, as it nears administration less than a year after being bought from Morrisons.

Greybull Capital bought the My Local brand from Morrisons for £25m in a deal fronted by Secret Millionaire star Mike Greene, but yesterday the owners filed its intention to appoint administrators.

KPMG has been lined up to handle the potential administration and could be formally appointed as early as next week, according to reports.

The news follows the high-profile retail collapses of BHS and Austin Reed.

Just weeks after acquiring the 140 stores, Mr Greene had said the chain would turn a profit immediately, and criticised the retailer’s previous management.

At the time Mr Greene said that he was predicting profits to roll in “immediately” from the My Local stores, as “basic errors” under previous management had stunted its growth.

Joanne McGuinness, Usdaw national officer said: “My Local staff are devastated by the news that the company is going into administration. Having been sold by Morrisons last year, there was a mood of optimism that the new owners could turn around the business.

“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.”

Reports suggest that Morrisons, which sold the chain last September, could face liabilities of up to £20m if My Local goes under although it is understood that their exposure on unexpired leases, should My Local collapse, is considerably less than was reported at the time of the sale last autumn.