Convenience store chain MyLocal will be offloading 10% of its sites as a result of a “challenging” trading environment, according to Sky News.
MyLocal owner Greybull Capital which bought the convenience estate from WM Morrison last year will be selling just under 25 stores. The stores are likely to be sold to J Sainsbury and the Co-operative group among other operators.
The Co-op‘s purchases of some of the MyLocal estate could be finalised as early as this week, according to those close to the situation.
Initial problems at the convenience chain were caused by supplier issues which dampened sails. Roughly 12 of the 140 store estate were closed during the retailer‘s relaunch as a result.
Greybull Capital‘s decision has raised concerns about the future and stability of the business, which was acquired under a year ago.
Greybull, MyLocal and the Co-operative are yet to comment.
It is also understood that the Co-op will be selling a 300 convenience store estate and is currently in discussions with three bidders.