THE owner of the My Local convenience store chain has announced its intention to put the firm into administration, putting jobs at risk in East Lancashire.

Greybull Capital has lined up accountancy giant KPMG to act as administrator to its chain of more than 100 stores, which employs 1,650 people.

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There is one store in Blackburn and another in Barrowford.

It is understood that staff were briefed about the decision on Tuesday, with management saying the firm is likely to officially fall into administration in the next couple of weeks.

My Local was sold to Greybull last year by supermarket Morrisons and has struggled to compete in the cut-throat grocery sector. The collapse caps a torrid few months for the retail sector, following on from the failures of BHS and Austin Reed, An East Lancashire spokesman for the union Usdaw said: “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.”

KPMG will attempt to sell the business as a going concern but, if a buyer cannot be found, then the stores will be sold off piecemeal. Greybull’s acquisition of My Local was fronted by retail entrepreneur Mike Greene, who appeared on Channel 4 show The Secret Millionaire.

It is understood that potential buyers have expressed an interest in some stores. Morrisons has given a lifeline to the My Local staff, offering to rescue their jobs if there are store closures at the stricken convenience store chain.

In a statement, Morrisons said: “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.”

It is understood that Co-Op’s convenience store arm has picked up five stores with Sainsbury’s also acquiring one.