More than 90 former M&Co employees are set to take legal action over redundancies.
Glasgow-based M&Co Trading entered into administration in December, blaming rising input costs coinciding with a decline in consumer confidence, which led to increased pressure on cash flows and trading losses.
The clothing retailer's brand and intellectual property were bought a few months later, but its 170 stores and almost 2,000 staff were not part of the transaction and began closing after Easter.
Former employees have instructed employment law firm Morrish Solicitors to claim protective award compensation.
Administrators made a number of redundancies at M&Co’s head office and distribution centre in Inchinnan, as well as the buying office in London shortly before Christmas.
By law, there should have been an information and consultation period before any decisions were made to make redundancies.
Where 20 or more employees are made redundant at one workplace, a company is under an obligation to engage in an information and consultation process, which must start at least 30 days before the first redundancies are made.
Omar Ghaffoor, employment solicitor at Morrish, 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, “ he explained. “Those involved in these legal proceedings could therefore receive up to £4,568 depending on their weekly pay and subject to deductions.”
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