Over 90 former M&Co. employees take legal action over redundancies

Almost 100 former employees of M&Co., which entered administration in December 2022, have hired solicitors to claim compensation after they were made redundant.
Administrators made a number of redundancies at M&Co’s head office, distribution centre, and buying office before Christmas 2022.

By law, M&Co. had been required to inform employees of a consultation period before any decisions were made about redundancies. However, the former employees argue that there was no advance warning.

Where 20 or more employees are made redundant at one workplace, a company is under an obligation to engage in a consultation process, which must start at least 30 days before the first redundancies are made.

Morrish Solicitors LLP has been hired to represent the 90-plus former M&Co. employees.

Omar Ghaffoor, Employment Solicitor at Morrish Solicitors, said: "With just weeks to go until Christmas and without any warning, staff were made redundant at M&Co. We have therefore been instructed to lodge Employment Tribunal proceedings for more than 90 individuals from both sites to secure compensation for what happened.

"Where more than 20 redundancies are made at one workplace without an information and consultation process, those made redundant can pursue a claim for a protective award – compensation of up to 90 days’ pay per employee. Some of that can be recovered from the national insurance fund.

"Those involved in these legal proceedings could therefore receive up to £4,568 depending on their weekly pay and subject to deductions."

M&Co. first went into administration in 2020, with the McGeoch family behind the business buying back the assets. The clothing chain appointed administrators for a second time at the end of 2022, later being purchased by Peterborough-based AK Retail.

The deal resulted in the closure of its 170 retail locations and the subsequent loss of hundreds of jobs.