Morrisons may receive only £30m from sale of convenience stores

6th Sep 2015 12:45

(ShareCast News) - Supermarket chain Morrisons may get as little as £30m from the sale of its convenience stores, according to report, as talks with investment company Greybull Capital rumbled on.According to the Sunday Telegraph, sources said the grocer expected to rake in between £30m and £50m from the sale, which came after a review by new chief executive David Potts.Greybull has been in "intense negotiations" with Potts over a deal, ahead of the grocer's latest set of interim results, which are due to be published on Thursday.Greybull has apparently appointed industry veteran Mike Greene, a convenience expert ex of McColl's and Spar, to head up its bid. Greene is understood to be wanting to take a back to basics approach and to re-brand the chain from M Local to "My local".At the time of final results in March, Morrisons said it would conduct a review the convenience arm, as well as slowing the rate of new M Local openings significantly in order to allocate more capital to maintaining and updating its core estate.At the company's 1 February year end, after opening 57 and closing six in the preceding 12 months, had a total of 153 convenience stores. Thursday's results will be Potts's first since taking up the role.