Morrisons has agreed to sell 140 M Local stores to former ACS chairman Mike Greene for £25m.

The new owner, backed by investment firm Greybull Capital, plans to develop the chain as an independent and profitable business, rebranded under the name ‘My Local’, with a renewed commitment to the communities and customers it serves.

“The convenience sector continues to grow ahead of larger supermarkets as people’s hectic lifestyles increasingly lead them to favour more frequent, smaller and top-up shops,” said Greene. “We are inheriting a set of good stores with highly-trained teams of colleagues.

“With a new strategy tailored to the convenience sector, ‘My Local’ is confident of a profitable and sustainable future.”

The convenience veteran was revealed to be behind the deal last month.

While the deal will ensure none of the 2,300 members of staff will be made redundant, independent retailers have admitted the takeover could pose a threat to their business.

Morrisons expects to lose about £30m on the transaction and will also be remain liable for the leases on the shops if the new business fails.