Morrisons offers to hire My Local staff if chain goes into administration

My Local has filed a notice of intention to appoint administrators, putting 1,700 jobs at risk. In a statement Morrisons said it would “welcome our former colleagues back”.

“We are saddened and disappointed to learn that My Local is about to enter administration. We want to help our former colleagues who now work for My Local,” the company said.

“We can therefore confirm that if no buyer is found, and stores close, we will welcome our former colleagues back to a job at Morrisons.”

Accountancy firm KPMG, which has been working with My Local’s management on considering options for the future of the 120-store chain, was lined up on Tuesday afternoon to handle an administration, the Guardian reported.

Any appointment could mean a possible liability of up to £20m for Morrisons, which sold the convenience store chain for £25m in September 2015 to a group fronted by the retail veteran Mike Greene, the report added.

The My Local deal was backed by Greybull Capital.

As part of the sale of its convenience stores, Morrisons retained a guarantee on a number of lease obligations, meaning that they will revert to the supermarket if My Local collapses.

At the time of the sale, the leases on the stores were thought to have an average of about five years remaining, the report stated.

Morrisons sold 140 My Local stores, at which about 2,300 people were employed.