Convenience store My Local is about to appoint KMPG as an administrator after shutting nearly 90 stores in the past few days.
The company was sold last year by Morrison to investment firm Greybull Capital.
Morrisons said: “We are saddened and disappointed to learn that My Local is about to enter administration.
“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.”
The announcement follows news that fellow struggler Store Twenty One has asked AlixPartners to help it negotiate a CVA with landlords of its stores.
From yesterday: Store Twenty One seeks CVA