SUPERMARKET giant Morrisons has thrown a lifeline to up to 1,658 My Local staff, offering to rescue their jobs if there are closures at the stricken convenience store chain.

The nationwide grocery firm has announced its intention to call in the administrators following a crisis which puts the future of 2,300 staff at risk in 100 outlets – including those in Southampton, Fair Oak, Holbury and Gosport.

Owners Greybull Capital has lined up accountancy giant KPMG to act as administrator – with management saying the firm is likely to officially go into administration in the next couple of weeks.

It is understood that shocked staff have been briefed about the decision – including those at its flagship store in the City Gateway Way complex – also known as the Fag Butt – in Swaythling.

My Local was sold to Greybull last year by Morrisons and has struggled to compete in the cut-throat grocery sector.

In a statement, issued yesterday Morrisons said: ‘’We are saddened and disappointed to learn that My Local is about to enter administration.

‘’We want to help our former colleagues who now work for My Local. We can therefore confirm that if no buyer is found, and stores close, we will welcome our former colleagues back to a job at Morrisons.’’

KPMG will attempt to sell the business as a going concern but, if a buyer cannot be found, then the stores will be sold off piecemeal or closed down.

It is understood that Co-Op’s convenience store arm has picked up five stores with Sainsbury’s also acquiring one.

Greybull’s acquisition of My Local was fronted by retail entrepreneur Mike Greene, who appeared on Channel 4 show The Secret Millionaire.

The collapse caps a torrid few months for the retail sector, following on from the failures of BHS and Austin Reed.

Joanne McGuinness, national officer at union Usdaw, said: “My Local staff are devastated by the news that the company is going into administration. 

“Having been sold by Morrisons last year, there was a mood of optimism that the new owners could turn around the business.

“We are talking with the company in a bid to save jobs and get the best deal for staff. In the meantime we are providing the support, advice and representation they need at this unsettling time.’’

The collapse caps a torrid few months for the retail sector following on from the failures of BHS and Austin Reed.

This week Debenhams said it had seen a 0.2 per cent fall in like-for-like sales in the 15 weeks to 11 June. And Swedish retailer H&M saw a 17 per cent fall in second-quarter profits, hit by weak demand for its spring clothes.