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Convenience store chain My Local is to go into administration just nine months after it was bought from Morrisons.
The company reportedly employs 1,650 people and has 130 stores across England and Wales, including Chatham, Maidstone, Ramsgate and Whitstable.
The business was bought by investment company Greybull Capital for £25 million in September, after Morrisons announced a review of its convenience store strategy.
It appointed retail entrepreneur Mike Green to lead the operation but staff were told on Tuesday of its intentions.
It comes during a terrible time for the retail sector, with the administrations of Austin Reed and BHS.
Usdaw – the Union of Shop, Distributive and Allied Workers – said staff were devastated by the news, with the company set to go into administration in the next couple of weeks.
National officer Joanne McGuinness said: “Having been sold by Morrisons last year, there was a mood of optimism that the new owners could turn around the business.
“We are talking with the company in a bid to save jobs and get the best deal for staff. In the meantime Usdaw is providing the support, advice and representation they need at this unsettling time.”