A CONVENIENCE store chain is on the verge of folding.

Administrators are poised to take over 120 My Local stores across the country, including branches Shoebury, Southend, Leigh, and Benfleet.

Morrisons sold the stores last September to a team led by entrepreneur Greybull Capital for £25m.

A My Local store in Ness Road, Shoebury, which opened in September 2014, was this weekend clearing its stock and selling it off at discount prices.

One shopper who asked not to be named said: "I came out with a big bag of stuff for £1.60. They are getting rid of everything. All the alcohol has gone and there's hardly anything left on the shelves. I had no idea they were closing. It's a real shame."

The closure is a blow to the area as it marked an upturn in the shopping parade when it opened, but it had stiff competition around the corner in Campfield Road from a Sainsbury's Local

John Budge from the Shoebury Residents' Association, said: "It's very disappointing. It was a new addition to the area which has been picking up. It was nice to see it open on Ness Road but it's a shame if we're going to lose it.

"I do think there are a lot of them though. In Westcliff there are Tesco, My Local and Sainsbury's stores all near each other and just think there are far too many of them."

A My Local store was due to reopen in Rayleigh High Street following the Morrisons sale but the plans foundered.

Martin Hodgson from Rayleigh Chamber of Trade said the news was a blow to the town's High Street.

He said: "It is disappointing we aren't going to get a shop like that. We need some local food stores in the High Street. Not everyone wants to trek to the big supermarkets, particularly the elderly."

Managers at the stores have been told not to comment and spokesperson for Greybull Capital said the company was not yet in administration but it had filed notice of its intention to do so, giving the company time to appoint administrators if necessary.