DHL Supply Chain is downsizing its My Local operation after the convenience store chain was placed into administration this week.

The operator took over transport and distribution for the former Morrisons convenience store estate last September from Wincanton.

The 140 M Local stores were sold at a £30m loss to entrepreneur Mike Greene by Morrisons. Greene insisted last year that the new stores, rebranded as My Local, would succeed where Morrisons’ had failed.

However, the chain was placed into administration this week with KPMG overseeing the process.

Mark Orton, partner at KPMG and joint administrator, said: “Companies across the convenience store sector have faced significant challenges in recent times, through increasing competition, pricing pressures, changes in customers’ buying habits and general structural change within the sector.

“Since taking over the business in last year, management have faced tough trading conditions and despite their best efforts to improve performance, My Local was ultimately unable to return to viability.”

The majority of the shop estate is now closed but KPMG said it was in discussions over 32 sites that are still trading.

A spokeswoman for DHL said: “Following confirmation that My Local has gone into administration, we will be downsizing our operations accordingly to take into account the reduction in volume.

“We do not foresee any job losses from this action.”