Clothing chain M&Co falls into administration again
Value-focused Scotland-based clothing chain M&Co has called in administrators, collapsing for the second time in a little over two years. Teneo confirmed it has been brought in to the retailer, formerly known as Mackays, which is one of the highest-profile, clothing chains in Scotland, as well as operating across the UK. It currently has 170 stores and employs almost 2,000 people.
The company has struggled in recent years and went into administration in 2020 in the wake of the pandemic, but was quickly bought back by its founding family.
The extent of its problems in recent years can be seen from the fact that back then (in late summer 2020), it said it would shut 47 of its shops leaving it with 215 and 2,600 continuing jobs. So the downsizing of its store estate has continued in the intervening years, and in just the last week, two stores have closed with the shuttering of the Dorchester (Dorset) branch and the Droitwich (Worcestershire) branch.
The latest administration comes with no immediate redundancies, and the business will continue to trade as administrators explore a potential sale.
One of the joint administrators said the company had seen a sharp rise in costs – like the rest of the retail sector – along with declining consumer confidence. This put increasing pressure on its cash position, despite it having a loyal customer base and being a well-recognised brand.
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