Scots clothing chain M&Co at risk of shutdown as firm enters administration

Scots clothing chain M&Co has entered administration, sparking fears of store closures and job losses across the UK.

The firm, which began life as Mackays pawnbrokers, has appointed three representatives from Teneo Financial Advisory Limited as joint administrators following a period of difficult trading and a "decline in consumer confidence". Teneo has insisted no jobs will be lost immediately, Aberdeen Live reports, and both the company's 45 Scottish stores and its website will continue trading.

News of the company's precarious situation - the second such time it has been put up for sale in three years - was first reported by fashion magazine Drapers. At present, M&Co has around 180 stores across the UK, many serving as fixtures of local high streets.

A spokesman for Teneo told Drapers: "Like many retailers, the company has experienced a sharp rise in its input costs, which has coincided with a decline in consumer confidence leading to increased pressure on cash flows and trading losses.

"No immediate redundancies have been made and the joint administrators are exploring a potential sale of the business in an accelerated timeframe, during which time the company will continue to trade from its stores and website."

M&Co stores are a fixture of many Scottish high streets (Reach PLC)

Reports in local media across the country suggest a number of stores have already closed their doors for good, including the chain's store in Inverurie. It is unclear whether the jobs have been transferred to other stores during the administration process.

M&Co fell into administration in August 2020, when it was bought back by its Scottish owners the McGeoch family in a pre-pack deal that saw it close 47 stores and cut over 300 jobs.

The company was first established in 1834 as a pawnbrokers in Paisley by the McGeochs before switching to selling clothes in the 1950s.

Its stores were rebranded as M&Co in 2003 in a bid to attract a younger, more modern clientele. The company remains locally headquartered, in Inchinnan near Renfrew.

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