05 August 2020
Family owned retailer, M&Co will close around 47 of its 260 stores as part of a pre-pack deal, agreed with administrators. The pre-pack will also see its assets sold back to the McGeoch family.
In terms of jobs, 360 will be shed with 2,200 retained.
The new deal and smaller network of high street-based stores is thought to strengthen its position.
CEO, David McGeoch 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.''
Deloitte have been handling the process, since being the advisors to the company on its options going forward in the recent weeks. It is understood that the debt opportunities arm of investment firm, Aurelius, agreed to provide the funding M&Co needed to enable it to weather the ongoing impact of the COVID-19 crisis.
The Scottish retailer adds to the long list of high street names having to turn to administrators to have a chance of survival, following the impact of the unprecedented coronavirus pandemic.
30 June 2020
M&Co is working with Deloitte as it hunts for new investors.
The Scottish family-owned retailer is searching new investors following a fall in its sales from the coronavirus lockdown. Many turnaround funds and private equity firms have been approached, assessing their interest in a deal.
The retailer is said to be evaluating its options which include a partial or whole sale, involving a pre-pack administration if necessary.
Altogether the retailer trades from 262 stores with around 2,700 employees. It is believed that staff have been informed that restructuring options are being investigated into.
M&Co is owned by the McGeoch family and has traded before under the name of Mackays.
Figures from February 2019 report that earnings before interest, tax, depreciation and amortisation were £8.7m and an operating profit of £3.6m was recorded. Its net debt fell in the same period from £19m to £8.7m.
M&Co declined to comment.