M&Co to axe 380 jobs as part of restructuring
Fashion retailer M&Co has completed a financial restructuring exercise which will save 2,200 jobs, although 380 roles will be made redundant.
The company has also been put into administration with its assets immediately bought back by the founding family.
The administration process, which is being managed by Deloitte, will see M&Co’s store estate reduced from 265 to 218. Job losses will also include roles within the retailer’s Glasgow and London operations.
Prior to the announcement, M&Co had a total workforce of 2.600.
M&Co chief executive Andy McGeoch said: “Like many of the UK’s best-known high street names, we’ve been facing up to a number of underlying business challenges in the current retail environment, which have been exacerbated by the impact of Covid 19. Being forced to close all our stores for several months meant a huge financial hit.
“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 that 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.”
The company said the decision has given it a sustainable basis from which to rebuild. It now believes its local high street stores will play a major role in its future performance due to the Covid-19 pandemic making people less enthusiastic about travelling longer distances to go shopping.
McGeoch added: “The response from our loyal customer base during lockdown was phenomenal. We had a steady stream of requests for updates, with some customers even posting letters through the doors asking when we were reopening. It’s hugely encouraging to hear our customers say how much they have missed us after months away.”
