CONVENIENCE Store My Local in Cirencester has closed down.

The store was seen today shut up with empty shelves and posters saying: "CLOSING DOWN: 70% OFF everything".

The My Local chain, sold by Morrisons last September to Greybull Capital, was reported early last week to be facing administration.

The Usdaw union said last week that Greybull had lined up accountancy firm KPMG to be administrator for its 120-store business which employs 1,650 people.

It was understood that staff were briefed about the decision last Tuesday, June 21.

Reports last week by the Daily Telegraph and the Guardian claimed that Morrisons would face liabilities of up to £20m if My Local were to go under.

Morrisons sold the chain, formally known as Morrisons' M Local, for £25m in a deal fronted by retail veteran Mike Greene, who appeared on Channel 4 show The Secret Millionaire.

As part of the deal, Morrisons retained a guarantee on a number of lease obligations, meaning they will revert to the supermarket if My Local collapses.

Morrisons sold 140 stores, but it is understood that 25 have already closed or been sold as the chain downsized.

KPMG was understood to be looking at a number of options for the business, including the sale of up to 10 stores to the Co-operative Group.

The grocery market is in a price war prompted by the rise of discount stores Aldi and Lidl, which have been rapidly expanding.

More to follow.