ICSM Retail Insolvency Business News: M&Co enter administration for a second time leaving suppliers high and dry and nearly 2,000 jobs in doubt

By Harry Mottram: One of the high street staple retailers has collapsed into administration for the second time with little sign of a rescue package as rivals struggle to survive. All the usual factors have brought about the demise of M&Co with the rise in online shopping, the Covid lockdowns, historic debt, rising interest rates, inflation and the latest problem of the Cost of Living Crisis leading to a fall in household spending.

Administrators Teneo put the 170 shops up for auction but nobody came forward with a bid for the Scottish based business empire with its range of fashion clothing and accessories. It means the future for suppliers to the shops and the employment prospects for the 1,910 staff are bleak. The chain has been conducting a fire sale of stock both online and in the shops in an attempt to turn things around but to no avail.

Hilco a firm specialising in turning around struggling companies and who backed M&Co in a pre-pack in 2020 have ICSM understands is no interested in getting involved a second time.

Ian Carrotte of ICSM who specialise in alerting its members about late payment and potential bad debts said M&Co may not find a buyer for the whole chain due to its demographic and locations. “It’s possible some of the stores may find a buyer but the likes of Next sell to a different market,” he said, “and some of the stores are not in prime locations.”

 The stores are also widely spread out from Dorset to the north of Scotland making distribution an issue as transport costs rise. Ian Carrotte said the downturn was the final straw from many retailers as many people are concerned about what may happen this year and are putting a freeze on spending.

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For details for the work of the journalist Harry Mottram visit www.harrymottram.co.uk