KPMG has been called in to do an urgent strategic review of the My Local convenience store business by backers Greybull Capital.
It is understood that the range of options that the auditing and restructuring consultancy firm will consider include placing the chain into administration.
Industry insiders report that My Local has maintained a healthy level of average basket spend since the acquisition, but has not been able to attract the same number of customers per week as it did under the Morrisons brand. As a result, Greybull have been forced to inject more funds into the business on regular occasions in order to meet its liabilities on store leases and other expenditure.
In May, the chain put around 20 sites on the market where local trading conditions made the stores unviable. Under the terms of the original acquisition, Morrisons would be required to continue paying the rents for the stores in the event of My Local becoming insolvent.