My Local

My Local was a British convenience-store chain established in 2015 after Morrisons sold its M Local convenience business to MLCG Limited, an entity associated with convenience-retailing executive Mike Greene and private-equity investor Greybull Capital. The transaction transferred approximately 140 shops for a reported £25 million, with the estate rebranded under the My Local name. The chain operated in the convenience-grocery market, competing with formats such as Tesco Express, Sainsbury's Local, Co-op Food and Spar. The business originated in Morrisons' attempt to expand beyond large supermarkets. Morrisons began developing smaller M Local shops in 2010, opening the first location in Ilkley, West Yorkshire, in 2011. The format was intended to combine everyday grocery shopping with elements associated with Morrisons, including fresh food, ready-to-eat hot food, coffee, pastries, rotisserie products, porridge and salad. Morrisons expanded the estate through new openings and acquisitions of premises formerly occupied by Jessops, Blockbuster and HMV. By the end of 2013, roughly 70 shops had opened, although the company subsequently acknowledged that parts of the convenience operation were unprofitable. Morrisons announced the sale of the convenience estate in September 2015. My Local's leadership presented the acquisition as a turnaround opportunity. Mike Greene, who had experience in convenience retailing, argued that the stores had been poorly managed under Morrisons and stated that he expected the rebranded chain to become profitable during its first year. The new operator also announced plans to reopen ten locations previously closed by Morrisons. In practice, only one of those sites was reportedly reopened under the My Local name. Trading deteriorated rapidly after the rebrand. Customers reportedly moved to competing stores, citing high prices, weak product availability and poor fresh-produce quality. Sales fell substantially below the levels achieved when the shops were operated by Morrisons. Less than four months after trading began, My Local appointed KPMG to examine strategic and financial options. The company pursued cost reductions, revenue improvements and possible disposals, while also exploring a potential asset transaction with the Co-operative Group. The attempted recovery did not succeed. In June 2016, reports indicated that KPMG was preparing contingency plans that could include administration. Shops began closing from 27 June, and My Local entered administration on 29 June 2016, putting approximately 2,300 jobs at risk. The entire chain was closed by 1 July. After the collapse, parts of the estate were sold to other operators, including Blakemore Retail, which operates Spar stores, the Co-operative Group and The Southern Co-operative. My Local therefore existed as an independent retail brand for less than one year and is now defunct.

My Local was the successor to Morrisons' M Local convenience-store operation. Morrisons announced the smaller-format concept in September 2010 as part of an effort to establish a presence in city and neighbourhood locations where large supermarkets were less practical. The format was designed to resemble other British convenience chains while offering a relatively broad Morrisons-oriented range. Proposed and actual food-to-go features included pastries, coffee, rotisserie products, porridge and salad, alongside standard grocery products. Customers could also order selected products, including fresh meat and fish, and stock was supplied partly from nearby Morrisons superstores. The first Morrisons M Local shop opened in Ilkley, West Yorkshire, in 2011. Morrisons expanded the operation into cities and urban areas including Birmingham, Manchester, Cardiff and Bristol. It also acquired premises from failed or restructuring retailers, including seven Jessops and 49 Blockbuster locations, followed by six HMV shops acquired from administrators in February 2013. A distribution centre in Feltham was obtained to support shops in London and south-east England, where Morrisons had comparatively fewer large supermarkets. Around 70 locations had opened by the end of 2013. The convenience strategy encountered profitability problems. In November 2014, Morrisons said that six unprofitable shops would close and that the rollout would be slowed; a planned purchase of 40 additional sites was abandoned. In March 2015, the company announced a further 23 closures. These difficulties formed the background to Morrisons' decision to sell the remaining convenience estate. In September 2015, Morrisons announced that its approximately 140 M Local shops would be sold to MLCG Limited for a reported £25 million. MLCG was associated with Mike Greene and Greybull Capital. The legal transfer of Morrisons' wholly owned convenience subsidiary took place on 26 October 2015, and the shops were rebranded as My Local. Nisa was announced as the new chain's supplier under a five-year agreement described at the time as having a value of £1 billion. My Local also stated that it would reopen ten stores previously closed by Morrisons. Greene led the new business and presented the acquisition as a turnaround. He criticized Morrisons' operation of the shops and expressed confidence that My Local could become profitable in its first year. The turnaround did not materialize. Sales declined sharply compared with the Morrisons period, while customers reportedly complained about pricing, product availability and the quality of fresh produce. Only one of the ten previously closed sites was reportedly reopened under the My Local banner. In February 2016, fewer than four months after the chain began trading, MLCG appointed KPMG to review its options. The review involved cost reductions and the need for a substantial increase in revenue. During March, My Local was reported to be discussing an asset swap with the Co-operative Group. The proposed arrangement could have involved My Local acquiring as many as 40 former Somerfield sites while the Co-op acquired a smaller number of My Local branches. By June 2016, the business was reported to be seeking emergency assistance from KPMG and considering administration. Shops started closing on 27 June, and MLCG entered administration on 29 June. The collapse occurred roughly nine months after the chain's creation and put about 2,300 jobs at risk. Morrisons said it would seek to redeploy affected former employees in its own stores. All My Local shops had closed by 1 July. In the subsequent break-up of the estate, seven shops were sold to Blakemore Retail for operation under the Spar banner, six went to the Co-operative Group and six to The Southern Co-operative. The My Local brand is now defunct.

1. 2016My Local enters administration

   After severe trading difficulties and a KPMG review, My Local enters administration on 29 June and the estate closes by 1 July.

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2. 2015My Local is created from the M Local estate

   Morrisons sells its convenience subsidiary to MLCG Limited, associated with Mike Greene and Greybull Capital, and the shops are rebranded as My Local.

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3. 2014Morrisons slows convenience expansion

   Morrisons announces closures of unprofitable locations and abandons a planned batch of 40 additional sites.

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4. 2013M Local estate reaches roughly 70 shops

   Morrisons has opened approximately 70 convenience shops, supported by acquisitions of former Jessops, Blockbuster and HMV premises.

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5. 2011First M Local shop opens

   The first Morrisons M Local location opens in Ilkley, West Yorkshire.

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6. 2010Morrisons announces the M Local format

   Morrisons announces plans for smaller convenience shops designed to complement its large supermarket estate.

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A neighbourhood convenience-store chain intended to provide a broad grocery range and fresh, ready-to-eat food in smaller-format shops. The brand was positioned as a turnaround of Morrisons' former M Local estate, but struggled to retain customers against established convenience competitors.

• My Local convenience shopsConvenience grocery retail2015

  Small-format neighbourhood stores selling everyday groceries, chilled and frozen products, snacks, drinks, household necessities and fresh food. The format inherited elements of Morrisons' M Local proposition, including a wider-than-basic convenience assortment and selected ready-to-eat or hot-food products. The stores were intended to serve quick top-up shopping and local daily needs rather than replace a full supermarket trip.

• 2016Commission a KPMG turnaround reviewStrategy

  Sales were significantly below the levels achieved under Morrisons, with customers reportedly moving to competing convenience stores.

  What changed. MLCG appointed KPMG to review the available options, including cost savings and measures to increase revenue.

  Aftermath. The review did not prevent administration, which followed on 29 June 2016.

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• 2016Explore an asset swap with the Co-operative GroupM&A

  My Local sought ways to improve its store portfolio while under financial pressure.

  What changed. The companies discussed a possible arrangement under which My Local could acquire up to 40 former Somerfield shops and the Co-op could acquire a smaller number of My Local branches.

  Aftermath. The proposed transaction did not stabilize the business before its administration.

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• 2015Acquire and rebrand Morrisons' convenience estateM&A

  Morrisons had struggled to make parts of its M Local convenience operation profitable and decided to sell the estate.

  What changed. MLCG Limited, associated with Mike Greene and Greybull Capital, acquired the convenience business and relaunched the stores as My Local. Nisa was selected as supplier for the new chain.

  Aftermath. The rebranded chain experienced falling sales and was placed into administration within approximately nine months.

  Reported acquisition price. £25 million (2015 transaction)

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• 2016My Local appoints KPMG to review its options

  Weak trading prompted My Local to appoint KPMG to assess strategic options, including cost savings, revenue improvements and possible asset disposals.

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• 2016My Local explores a possible asset transaction with the Co-operative Group

  The companies were reported to be discussing a potential exchange involving up to 40 former Somerfield shops and a smaller number of existing My Local branches.

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• 2016My Local enters administration

  My Local entered administration on 29 June after a rapid deterioration in sales and unsuccessful efforts to stabilize the business. Approximately 2,300 jobs were placed at risk, and the shops closed by 1 July.

  Bankruptcy
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• 2015Morrisons sells its M Local convenience-store estate to create My Local

  Morrisons announced the sale of approximately 140 M Local convenience shops to Mike Greene and Greybull Capital for a reported £25 million. The shops were transferred to MLCG Limited and rebranded as My Local.

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1. My Local