M&Co pre-pack deal to result in 50 store closures
Value fashion retailer M&Co is set for a pre-pack administration that will result in 50 of its stores closing, it has been reported.
According to Sky News the value fashion retailer is negotiating with administrators over a deal that would allow it to cut back its 260-strong store estate but retain most of its 2,700 staff. It is understood however that hundreds of jobs would be lost.
The Scottish based business was founded in 1961 by the McGeoch family and is headed by CEO Andy McGeoch. It has been working with Deloitte on a turnaround plan and a number of potential investors had been approached.
A number of businesses have resorted to pre-pack administrations amid the COVID-19 crisis to reduce store estates and create a viable business moving forward.
Monsoon Accessorize was recently bought in a pre-pack by its founder Peter Simon in a move that led to the immediate closure of 35 of its stores. Some 157 of its previous 230 stores are expected to be saved.
JD sports also employed the pre-pack method to rescue its outdoor business Go Outdoors while Cath Kidston owner Baring Private Equity Asia bought the online business out of administration in April and jettisoned its 60 stores.