Mon, 12 Dec 2022 | ADMINISTRATION
Scottish high street clothing retailer M&Co has fallen into administration for the second time in just over two years. Administrators from Teneo said that the company had succumbed to a range of pressures currently impacting UK retailers, including rising costs and falling consumer confidence.
The company, which has 170 UK stores and employs 1,910 staff, appointed administrators on Friday and is now seeking to secure a sale “in an accelerated timeframe”. Administrators said that “no immediate redundancies” had been made and that the company’s stores and website would continue to trade.
Over the past week, the retailer has closed two stores in Dorchester, Dorset and Droitwich, Worcestershire. Commenting on the company’s collapse, administrator and Teneo Managing Director Gavin Park said: “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 trading challenges.”
Park said that, despite the retailer having “a very loyal customer base, particularly in local markets, and a well-recognised brand”, the headwinds affecting the retail sector amid rising costs and the cost-of-living crisis had exerted “increasing pressure” on its cashflow.
Park added: “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.”
The company, formerly known as Mackays, previously fell into administration in August 2020 after it struggled to trade through the COVID-19 pandemic and associated lockdowns, which severely impacted high street footfall.
As part of that process, the company’s assets were immediately sold back to its owners the McGeoch family in a pre-pack acquisition that saw 47 of its stores close.
M&Co’s administration comes amid a wave of insolvencies in the UK retail sector. Last month, online furniture retailer Made.com fell into administration after being hit by global supply chain disruption. The company’s brand and intellectual property were ultimately sold to high street retailer Next for £3.4 million. In the same month, Next also acquired clothing retailer Joules in a pre-pack sale valued at £34 million.
Find businesses for sale here.
If you are looking for an exit, we can help!.
The company offers the sale of fashion jewellery, lingerie, and sexual health products and toys, pyjamas, gym clothing, beachwear, and PPE. Priding itself on its high-quality products and exceptional customer service, the company offers its produc...
LEASEHOLD
A thriving e-commerce business that specialises in both travel luggage and hamper gifting sectors. The business has been trading since January 2012. They have introduced a branded website for affordable gifting to suit all budgets and occasions and a...
LEASEHOLD
A commercial vehicle sales business that supplies a range of used commercial vehicles from a number of well-known brands, including Ford, Citroen, Mercedes and Vauxhall. Trading out of a sizable portable premises. Operates from leasehold premises...
LEASEHOLD
27
|
Jan
|
Administrators to sell assets as office furniture maker collapses | ADMINISTRATION
Bluespot Furniture, a West Yorkshire-based furniture manufac...
26
|
Jan
|
UK M&A down 16 per cent in 2022, but sentiment remains optimistic | BUSINESS NEWS
New analysis from PwC has revealed that UK M&A activity decl...
26
|
Jan
|
Private equity-backed law firm targeting further M&A in 2023 | BUSINESS NEWS
Stowe Family Law, a Leeds-headquartered specialist family la...
Sign up to receive our acquisition alert emails to get your FREE guide
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources