Six-figure loss for Nisa after My Local collapse

Nisa is to lose a six-figure sum following the collapse of My Local in June, a source has told Retail Express.

However, the company has said the loss would not have a “material impact” on the business. According to My Local administrator KPMG, unsecured creditors including suppliers and councils from across the UK, are collectively owed £16.7m by the convenience chain’s closure.

Nisa’s total loss stands at £8m, but the company is insured for 90% of it, significantly reducing the net deficit. 

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.”

In July, Nisa reported its biggest annual swing in profit in its history, with end-of-year figures for the 2016 financial year revealing adjusted earnings of £7.3m, compared to losses of £2.9m in the previous year.

The My Local chain was bought from Morrisons and renamed in October 2015 with convenience store veteran Mike Greene at the helm. Greene secured a distribution deal with Nisa and made a raft of changes to the business to make the stores more profitable, but they continued to make losses, leading to KPMG being called in as administrators.

Of the 125 stores, 33 have been purchased by several companies, including The Co-op, Blakemore and McColl’s, raising £5.6m

Greene was unavailable for comment.