M&Co back in administration as buyer sought
M&Co, the fashion retailer founded in Scotland, has again collapsed into administration but will continue to trade while attempts are made to find a buyer.
Teneo Financial Advisory has been appointed joint administrators to the group which currently employs 1,910 staff and has 170 shops across the UK.
A spokesman for Teneo, said: “Like many retailers, the company has experienced a sharp rise in its input costs, which has coincided with a decline in consumer confidence leading to increased pressure on cash flows and trading losses.
“No immediate redundancies have been made and the joint administrators are exploring a potential sale of the business in an accelerated timeframe, during which time the company will continue to trade from its stores and website.”
A number of stores in England have closed in the past week, reports trade publication Drapers.
David Lonsdale, director of the Scottish Retail Consortium, said: “This underlines the immense strain that some firms within the retail industry are under due to the weak economy, shifting shopping habits and sluggish footfall, and galloping energy bills and public policy costs.
“These factors are combining to make trading as challenging as at any time.”
M&Co, previously known as Mackays, was launched by the McGeoch family in 1961 and run from Paisley. It restructured via a pre-pack administration deal in August 2020, resulting in the closure of 47 stores and the loss of 381 jobs.
The trade assets of the business were sold to new company M&Co Trading Limited via the restructuring process handled by Deloitte.
A new company was created, saving more than 2,200 jobs.