M&Co sold to founders in pre-pack administration deal, 47 stores to close

M&Co sold to founders in pre-pack administration deal, 47 stores to close

Scottish value fashion chain M&Co has announced the completion of a
financial restructuring which saw it being sold and immediately bought back
by its founders, the McGeoch family.

The pre-pack deal will result in 47 of its 265 stores closing, and around 380
redundancies from its total workforce of 2,600.

M&Co appointed Deloitte as administrators in June to assess options for
the business following lockdown which forced its stores to be closed for

“Like many of the UK’s best-known high street names, we’ve been facing
up to a number of underlying business challenges in the current retail
environment, which have been exacerbated by the impact of Covid-19. Being
forced to close all our stores for several months meant a huge financial
hit,” CEO Andy McGeoch said in a statement.

M&Co announces 47 store closures, 380 job losses

McGeoch said that “most” of the retailer’s stores reopened in June but
it became quickly apparent “that the business, as previously structured,
would remain under severe pressure from the ongoing challenges of
Covid-19”. The company therefore decided that “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”.

“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,” McGeoch said.

“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

M&Co was founded in 1961 by the McGeoch family. It started off as a
small business with only six stores in Glasgow before expanding across the

Photo credit: M&Co, Facebook

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