Value fashion retailer M&Co has been sold in a pre-pack administration deal, resulting in the immediate closure of 47 of M&Co’s stores and immediate redundancy of the 327 staff members.
The trade and assets of the business were sold to new company M&Co Trading Ltd immediately following the appointment of Deloitte as administrators.
54 staff across the businesses offices have also been made redundant with immediate effect.
The remainder of the retailer’s 2,200 staff have been transferred to the new company under TUPE arrangements, alongside a license to take over its remaining 215 stores.
M&Co Chief Executive Andy McGeogh will continue to work with the brand, as he is listed as a company director of the new business.
McGeoch said the company took a “huge financial hit” after having to shut its stores in March due to the pandemic.
He said: “We reopened most stores in June and have been exploring every possible option, but it was obvious that the business, as previously structured, would remain under severe pressure from the ongoing challenges of COVID-19.
“It quickly became clear the best way to save most jobs and most stores was to enter administration, with a new company acquiring the assets of the old business, and this process has now been finalised.”
Deloitte Restructuring Specialist, Michael Magnay, said: “Like many high street retailers, M&Co has been seeking to address a number of underlying business challenges in the current UK retail environment, which have been exacerbated by the impact of COVID-19.
“The transaction sees the majority of the stores continuing to trade, protecting the employment of many of the company’s staff. However it’s clearly disappointing that a number of stores have had to close, resulting in today’s redundancies. We will provide all necessary support to those who have been impacted.”
The complete list of store closures has still to be compiled publicly.