MyLocal reportedly to sell 10% of sites

MyLocal, a convenience store chain established less than a year ago, is to sell more than 10% of its sites in a move that will cast doubt on its owner's long-term commitment to the business, Sky News reported citing a source close to the situation.

The report said “just under” 25 of the MyLocal estate has been earmarked for disposal to the Co-operative Group, J Sainsbury and other operators in separate transactions.

The first of the deals, which is expected to involve the Co-op buying a handful of the shops, could be struck as soon as this week.

MyLocal is owned by Greybull Capital, which acquired 140 convenience stores from Wm Morrison, the supermarket group, last year.

Greybull has sprung to prominence as the prospective new owner of the long products division of Tata Steel UK, and is also the controlling shareholder of Monarch, the airline.

Supplier problems hampered initial trading at MyLocal, and roughly 12 of the 140 shops were closed for a period after the chain's relaunch. Some of those shops remain shut.

MyLocal had been among the bidders for a portfolio of Co-op-owned stores which was sold last month to Hilco, a firm specialising in troubled retail investments.

A source close to the situation said the trading environment across small-store food retailing was "challenging".

A further 300-strong portfolio of convenience stores - owned by the Co-op - is also up for grabs, with three bidders understood to be in detailed discussions with the mutual.

Spokesmen for Greybull, MyLocal and the Co-op declined to comment on Tuesday, Sky reported.