My Local enters administration
Convenience store chain My Local has gone into administration putting 1,658 jobs at risk.
Mark Orton and Blair Nimmo from KPMG Restructuring have been appointed joint administrators to the business which operated 125 stores.
My Local employed 1,658 people across the UK. Prior to the appointment of the joint administrators, the directors successfully concluded a sale of two stores. However, a total of 90 stores have closed resulting in redundancies. While a further three are in the process of being closed, the remaining 32 stores remain open and continue to trade.
Orton said: “Companies across the convenience store sector have faced significant challenges in recent times, through increasing competition, pricing pressures, changes in customers’ buying habits and general structural change within the sector.
“Since taking over the business in October last year, management have faced tough trading conditions and despite their best efforts to improve performance, My Local was ultimately unable to return to viability. Having explored a number of other options, the directors were unable to find a way forward and took the difficult decision to place the company into administration.”
Although the majority of stores have now closed, the administrators said they 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.
Previously known as M Local, the chain was sold by supermarket business Morrisons to investment firm Greybull Capital last year for £25 million.
Orton said: “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.”
Recent data from the Local Data Company has suggested that convenience stores were the slowest growing segment in the food and groceries market over the last five years.
