More than 1000 jobs lost as My Local falls into administration
Convenience store chain My Local has fallen into administration, resulting in the loss of over 1,000 jobs. Ninety-three of the retailer’s 125 stores will close, with the remainder trading out of administration while buyers are sought.
If administrator KPMG cannot find a purchaser, the remaining stores will also likely close, resulting in further job losses. The chain had employed 1,658 people.
My Local was sold to Greybull Capital last year by supermarket Morrisons and has struggled to compete in the cut-throat grocery sector, which is embroiled in a bitter price war.
Mark Orton, partner at KPMG and joint administrator at My Local, said: “Management have faced tough trading conditions and despite their best efforts to improve performance, My Local was ultimately unable to return to viability.
“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.”
Last week Morrisons offered a lifeline to My Local staff, offering to rescue jobs if there were store closures. The supermarket said it will offer its former staff jobs at its stores.
Greybull’s acquisition of My Local was fronted by retail entrepreneur Mike Greene, who appeared on Channel 4 show The Secret Millionaire.
Mr Greene said: “The last nine months has been one of the toughest retail trading periods that I have ever experienced and My Local has faced intense competition.The management team has been unable to return the business to profitability. For that I am truly sorry.
“We will continue to support the administrators in their efforts to safeguard as many jobs as possible.”
My Local’s collapse caps a torrid few months for the retail sector, following on from the failures of BHS and Austin Reed. On Tuesday, the owners of fashion firm Store Twenty One said they would push for a restructure that could result in store closures and job losses.