Former owner of My Local, Morrisons, has offered MyLocal staff a lifeline by proposing to rescue 1,658 jobs after the retailer announced its intention to put the firm into administration on Tuesday.
Greybull Capital, owner of MyLocal, has assigned KPMG to act as its administrator as it plans to close more than 100 stores across Britain.
Morrisons has said that if a buyer for the chain is not found, it will offer its former staff jobs at the supermarket.
KPMG will be attempting to sell the business as a whole, however if a suitable buyer is not accepted, the stores will be sold off separately.
Morrisons said in a statement: "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.
"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."