Morrisons takes a loss as it sells M Local convenience chain to retail veteran Mike Greene for £25m

Morrisons has struck a deal to sell its fleet of M Local convenience stores for £25 million.

The 140 stores will go to a team led by retail entrepreneur Mike Greene, which has the backing of Greybull Capital.

The properties were put up for sale under the Bradford-based grocer's new boss David Potts' plan to refocus the business on its traditional supermarkets after years of sliding sales.

Morrisons expects to take a loss of around £30 million on the sale, which comes roughly four years after it opened its first convenience outlet.

Potts said Morrisons, which arrived late in the convenience sector, had been unable to scale the chain but it "had learned much from its entry into the market".

"We remain open to other opportunities in convenience in the future," he added.

Under their new owners, the M Local stores will be rebranded as My Local and the staff currently working in them will keep their jobs.