MyLocal administrators transfer 26 stores to convenience rivals, more to follow

Administrators of the collapsed MyLocal convenience chain have agreed the sale of 26 shops and said they were close to completing 16 more.

The stores have been snapped by a number of convenience store operators, which have in the process taken on a total of 372 MyLocal employees.

KPMG administrators Mark Orton and Blair Nimmo said the convenience industry had shown a strong interest in many of the My Local stores, since the company's demise, which the pair said reflected "demand for high quality retail space in prime town centre locations".

"Over the coming days and weeks, we are hopeful of concluding a further 16 sales and will provide an update in due course,” they added.

When it called in the administrators in June MyLocal, which was formed by retail entrepreneur Mike Green with the September purchase of 125 smaller stores from supermarket group Morrisons for £25m, had closed 90 and sold two of its 125 stores.

The 26 stores for which KPMG has arranged sales were in Banbury, Barking, Bath, Benfleet, Bristol White Ladies, Bristol Gloucester Road, Bristol Portishead, Blackpool Warley, Cardiff, Chatham, Croydon Windermere, Ealing, Eastbourne, Lambeth, Leigh On Sea, Nottingham Railway, Rhyl, Rugeley, Steeton, Stockport Didsbury, Twerton, Widnes, Witham, Whitstable, Wokingham and Wroughton.

Recent reports from the Local Data Company (LDC) have suggested convenience stores were the slowest growing segment in the food and groceries market over the last five years.

As part of the deal with Green, Morrisons 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.

The Yorkshire-headquartered has also offered to hire former staff who lose their jobs as a result of the collapse of My Local.