Fashion chain M&Co closes 47 shops with 380 jobs lost amid pre-pack deal

The deal - the latest in a string of retail closures in recent days - saves 2,220 jobs and keeps 218 shops open

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Coreena FordChronicle and Journal business writer

15:23, 5 AUG 2020
Updated08:23, 6 AUG 2020

An M&Co store - the firm has closed 47 across the ��Ƶ (Image: Irvine Herald)

Fashion chain M&Co is to close 47 stores and axe 381 jobs as part of a major restructuring to secure the company’s long-term future.

The high street chain will continue to operate with 218 stores and 2,220 employees after completing the restructuring, having hired Deloitte as administrators in April.

The retailer said its reduced network of stores, focused on local high streets, will strengthen its position, “with the coronavirus outbreak reducing appetites to travel longer distances on public transport”.

Administrators at Deloitte successfully completed the sale of Mackays Stores Ltd , which trades as M&Co, in a pre-pack deal including trade and assets, to new firm M&Co Trading Ltd.

The majority of the company’s 2,600 staff have successfully transferred over but a total of 47 stores have closed immediately, and 327 staff working in those stores have been made redundant, along with a further 54 non-retail staff.

Michael Magnay, joint administrator, said: “Like many high street retailers, M&Co has been seeking to address a number of underlying business challenges in the current ��Ƶ retail environment, which have been exacerbated by the impact of Covid-19.

“The transaction sees the majority of the stores continuing to trade, protecting the employment of many of the Company’s staff. However, it’s clearly disappointing that a number of stores have had to close resulting in today’s redundancies. We will provide all necessary support to those who have been impacted.”

Chief executive Andy McGeoch said the company took a “huge financial hit” after having to shut its stores in March due to the pandemic.

He said: “We reopened most stores in June and have been exploring every possible option, but it was obvious that the business, as previously structured, would remain under severe pressure from the ongoing challenges of Covid-19.

“It quickly became clear the best way to save most jobs and most stores was to enter administration, with a new company acquiring the assets of the old business, and this process has now been finalised.”

Mr McGeoch said staff in stores and at its Glasgow and London headquarters will be impacted by the job cuts.

He said: “It’s not a decision we took lightly, after more than 50 years of trading, but it gives us a sustainable basis from which to rebuild, with the majority of our staff keeping their jobs and 218 stores in high streets across the country remaining open.

“The most difficult part of this process is undoubtedly seeing around 380 colleagues in stores and at our Glasgow and London operations leaving the business.

“It’s a terrible situation for them and I’m desperately sorry that we couldn’t come up with a viable plan which would have saved all the jobs.”

The retailer, which was founded in Scotland in 1961, is the latest retailer to announce cuts, following major job losses at WH Smiths and Dixons Carphone in the past 24 hours.

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Fashion chain M&Co closes 47 shops with 380 jobs lost amid pre-pack deal

The deal - the latest in a string of retail closures in recent days - saves 2,220 jobs and keeps 218 shops open

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