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.