My Local, the convenience chain sold by Morrisons for £25 million in September, has announced its intention to appoint administrators.

The move, which may or may not see the company file for administration through accountancy firm KPMG, would put 1,650 jobs at risk across the 120-store chain.

Greybull Capital bought the chain, previously known as Morrisons’ M Local, in a deal fronted by retail veteran Mike Greene. However, it has struggled to make its mark on the ultra-competitive convenience sector, resulting in approximately 25 stores having been closed or sold since the deal and it is thought that further downsizing has led to the loss of 600 jobs.

Joanne McGuinness, USDAW national officer, said that the union was in talks already to help secure the best outcome for the chain’s employees.

"My Local staff are devastated by the news that the company is going into administration. Having been sold by Morrisons last year, there was a mood of optimism that the new owners could turn around the business.

"We are talking with the company in a bid to save jobs and get the best deal for staff. In the meantime Usdaw is providing the support, advice and representation they need at this unsettling time."