M&Co restructuring saves 2,200 jobs and 218 stores

The retailer, which was hit hard by the impact of the coronavirus pandemic on the fashion industry, has successfully completed a financial restructuring that will see its store estate reduced to 218 stores, from 260, saving 2,200 job roles.

The deal had initially been thought to save 2,700 jobs.

Chief executive Andy McGeoch said: “As everyone knows, retail has been one of the sectors hardest hit by Covid-19, with long-term shop closures and social distancing having a hugely negative impact.

“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 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.

“It’s not a decision we took lightly, after more than 50 years of trading, but it gives us a sustainable basis from which to rebuild with the majority of our staff keeping their jobs and 218 stores in high streets across the country remaining open.

“The most difficult part of this process is undoubtedly seeing around 380 colleagues in stores and at our Glasgow and London operations leaving the business. It’s a terrible situation for them and I’m desperately sorry that we couldn’t come up with a viable plan which would have saved all the jobs.”