Family firm in trouble
M&Co ‘sold in pre-pack administration’, shuts 50 shops
Family-business facing slump in trade
One of Scotland’s biggest family-owned retailers is expected to confirm weeks of speculation and call in administrators.
M&Co, which trades from more than 260 stores, is close to a pre-pack insolvency deal that will see its assets sold back to the McGeoch family.
Fifty of the company’s stores will close permanently but the deal is likely to preserve the jobs of most of the company’s 2,700 staff, according to Sky News.
The debt opportunities arm of Aurelius, a prominent investment firm, is understood to have agreed to provide funding to M&Co to enable it to weather the ongoing impact of the COVID-19 crisis.
M&Co, which previously traded as Mackays, has been looking at options for the Renfrewshire-based business. Deloitte is believed to be handling the administration process.
Founded in 1961, M&Co is owned by the McGeoch family and is run by Andy McGeoch, its chief executive.
In the year to February 2019 it reported earnings before interest, tax, depreciation and amortisation of £8.7m and an operating profit of £3.6m. Its net debt fell in the same period from £19m to £8.7m.