Clothing retailer M&Co tasks Teneo with administration

16 December 2022 1 min. read

Clothes retailer M&Co has installed administrators from Teneo. The news comes as the company collapses for a second time in just over two years, amid the cost-of-living crisis.

Founded in 1834, Mackays Stores is a Scottish chain store selling women's, men's, and children's clothes, as well as small homeware products. Now known as M&Co, the firm’s head office is in Inchinnan, Scotland, though its main buying office is in London.

The company has struggled with falling sales and financial woes for some time – last collapsing in 2020, with lockdown having reduced footfall to almost zero. The firm was placed into administration, overseen by Deloitte, and its assets were immediately bought back by the family that built it up. The deal secured 2,600 jobs in 215 remaining stores, but it also saw another 47 shops close.

Clothing retailer M&Co tasks Teneo with administration

The firm most recently reported a headcount of 1,910, across 170 shops, suggesting those cuts were not the last. Even so, two years on, M&Co has once again fallen into administration. ‘Hundreds of jobs’ are now said to be on the line, though for now at least, no lay-offs have been made.

Experts from consulting firm Teneo were confirmed to have been brought in as administrators. Teneo has initially stated no immediate redundancies were made, as M&Co will continue to trade while administrators explore a potential sale of the business. Teneo’s Gavin Park told the press that M&Co had experienced a sharp rise in costs, while a “decline in consumer confidence” had meant it was unable to survive – a fate many firms may encounter in the coming months.

Park added, "Despite a very loyal customer base, particularly in local markets, and a well-recognised brand, the current economic outlook has placed increasing pressure on the Company's cash position."