Morrisons looks to sell M Local store chain
SUPERMARKET giant Morrisons is understood to be on the brink of selling its M Local convenience chain, with an announcement expected before or alongside its interim results this week.
The likely buyer is Greybull Capital, the investment firm that mounted a rescue for Monarch Airlines last year. The sale of M Local by new Morrisons chief executive David Potts would end his predecessor Dalton Philip’s perceived late entry into the supermarket convenience store sector.
City analysts said the subsidiary has had only lukewarm success, lacks scale and has diverted management attention from the challenges of the main stores as they fight off competition from discounters Aldi and Kwik Save.
They expect M Local would fetch between £30-£50 million. Morrisons is expected to unveil a fall in halftime profits to about £140m from £239m when it reports on Thursday.