Fashion Chain (M&Co) to close 47 stores and cut 380 jobs while restructuring
As COVID-19 continues to wreck havoc on the world of fashion, more fashion outlets / businesses are beginning to restructure to fit in to this new norm. Fashion Chain M&Co has just indicated its plan to close about 47 fashion outlets, leaving 218 stores to operate with while 2,200 employees will remain after cutting 380 people out of jobs. This will complete their restructuring, having hired Deloitte as administrators in April.
The retailer said it believes its reduced network of stores, focused on local high streets, will strengthen its position, “with the coronavirus outbreak reducing appetites to travel longer distances on public transport”.
Andy McGeoch, chief executive officer of M&Co, said the 50-year-old company didn’t take the decision of entering into administration lightly.
“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,” said Mr McGeoch.
“It quickly became clear 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.”
He added: “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.