Nisa is out of pocket to the tune of £8m as a result of the collapse of My Local, an update to creditors from administrators KPMG has revealed.
The group’s losses, however, are insured for 90% of the total, meaning that Nisa’s net deficit will be six figures rather than seven. Unsecured creditors 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.
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-£800,000.
Commenting on the update, a spokesperson for Nisa said: “Nisa has carefully managed its trading position with My Local, including having extensive and satisfactory insurance cover, and therefore does not expect the My Local administration to have a material impact.”
The disposal of 33 former My Local stores have been agreed, generating funds of £5.6m. Buyers include Southern Co-operative, The Co-operative Group, McColl’s, AF Blakemore, Sainsbury’s, Heron Foods, and independent operators, including Nisa-affiliated retailer KMD Enterprises.