Earlier this week My Local filed a notice of intention to appoint administrators, putting almost 1,700 jobs at risk.
Shortly after the announcement Morrisons said it would rehire former employees who may lose their jobs as a result of the expected administration of the chain.
“We are saddened and disappointed to learn that My Local is about to enter administration,” the company said. “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.”
Morrisons sold the 140-store chain of convenience stores last year but a number of stores have already been closed or sold on, putting the current number of stores at around 120.
As part of the sale Morrisons promised to guarantee rents on some stores if the business collapsed, leaving it with a potential liability of about £20m.
The chain is believed to have suffered by the poor location of a number of its stores, many of which were former Blockbuster sites.
The accountancy film KPMG, which has been working with My Local’s management team to establish the future of the chain, is likely to handle the administration process if it goes ahead.