Nisa, the convenience wholesale and retail group, is one of the creditors hit by the collapse of the MyLocal convenience chain, an update from administrator KPMG has revealed this week.
According to reports, however, the group’s losses are insured for 90% of the £8m total, meaning that Nisa’s net deficit will be six figures rather than seven.
A spokesperson for Nisa said: “Nisa has carefully managed its trading position with MyLocal, including having extensive and satisfactory insurance cover, and therefore does not expect the MyLocal administration to have a material impact.”
Unsecured creditors have not been so fortunate – they are owed a total of £16.7m, on top of funds owed to secured creditors Morrisons and Convenience Jersey Ltd, understood to be the vehicle for original backers Greybull Capital, according to Convenience Store magazine.
A small reserve fund of around £600,000 could potentially be shared among all unsecured creditors, which include HM Revenue & Customs, so the final loss to Nisa is likely to be in the range of £500,000 to £800,000.
The disposal of 33 former My Local stores have been agreed, generating funds of £5.6m. Buyers include wholesaler AF Blakemore & Son (these units are likely to become company-owned Spar stores), Southern Co-operative, The Co-operative Group, CTN chain McColl’s, Sainsbury’s, north of England and Midlands store operator Heron Foods, and independent operators, including Nisa-affiliated c-store operator KMD Enterprises, which is based in Chichester.
MyLocal was set up by supermarket Morrisons in 2011 as a 131-strong c-store chain called M Local, designed to compete with the likes of Sainsbury’s Local and Tesco Metro, but was sold off to entrepreneur Mike Greene and Greybull Capital and re-branded as My Local in 2015. After struggling to gain a foothold in a fiercely competitive market, it went into administration in June 2016.