By Daniel Hunter

Morrisons has agreed to sell its 'M Local' convenience stores in a deal worth £25 million.

A team led by retail entrepreneur Mike Greene and funded by Greybull Capital will buy the 150 store chain. The stores will be rebranded as 'My Local'. And it is understood all 2,300 staff will be kept, with plans to add 200 jobs in re-opening stores that had closed.

Morrisons had been expected to gain around £50m from the sale.

The deal brings to a close Morrisons' review of its convenience store business, which was launched in March. It is now believed that Morrisons will focus on its core, supermarket business in an attempt to boost sales and profits.

The announcement was made ahead of Thursday when the supermarket chain is expected to reveal a fall in profits.