Sad news for My Local supermarket stores
My Local, is going into administration nine months after being bought from Morrisons.
It was announced to the company's 1,650 staff at a meeting on Tuesday and followed months of tough trading for the business.
However, it has been suggested that many My Local staff can be saved from finding new work if a buyer for the business cannot be found, as Morrisons is planning to offer work to any of its own ex-employees who transferred to My Local after the sale of the business last September.
The supermarket giant, declined to comment.
We understand that administrators at KPMG will try to sell the business as a going concern, once it is officially in their charge, but if a buyer cannot be found then the stores will be sold off one by one.
The national union officer of USDAW, Joanne McGuinness 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.”
She went on to say "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".
My Local is owned by Greybull Capital, which bought 140 convenience stores from Morrisons for £25m but supplier problems have made trading difficult.
The business is led by Mike Greene, who said previously that he expected the rebranded business to be profitable in its first year.