Mark Orton and Blair Nimmo from KPMG Restructuring have been appointed joint administrators to MLCG Limited, the convenience store chain trading as My Local which has 125 trading stores across the UK.
My Local employed 1,658 people across the UK. Prior to the appointment of the joint administrators, the directors successfully concluded a sale of two stores. However, a total of 90 stores have closed, resulting in a significant number of redundancies. While a further three are in the process of being closed, the remaining 32 stores remain open and continue to trade.
Mark Orton, partner at KPMG and joint administrator at My Local, said: “Companies across the convenience store sector have faced significant challenges in recent times, through increasing competition, pricing pressures, changes in customers’ buying habits and general structural change within the sector. Since taking over the business in October last year, management have faced tough trading conditions and despite their best efforts to improve performance, My Local was ultimately unable to return to viability. Having explored a number of other options, the directors were unable to find a way forward and took the difficult decision to place the company into administration.
“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. We are pursuing these opportunities as a matter of priority in the hope that we will be able to conclude successful sales and safeguard as many jobs as possible.
“We will also work closely with all employees over the coming days, in particular ensuring those who have been made redundant receive the necessary support they need.”
Recent data from the Local Data Company (LDC) suggested that convenience stores were the slowest growing segment in the food and groceries market over the last five years.
Notes to Editors:
Stores sold prior to appointment:
Stores which continue to trade:
Stores to be closed:
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