M&Co closes 47 stores causing nearly 400 job losses

Nearly 400 jobs are set to be axed after Glasgow-based retailer M&Co announced it was closing 47 stores throughout the UK.

Among those closing will be eight stores closing in Scotland, affecting 63 employees.

The news comes as part of a major restructuring of the high-street fashion chain, which started off a small family-run business in the city more than 50 years ago.

After completing the restructuring they will continue to operate with 218 stores and 2200 employees.

The retailer, who brought administrators Deloitte in April, believes a reduced network of stores focusing on local high streets, will strengthen its position, “with the coronavirus outbreak reducing appetites to travel longer distances on public transport”.

The M&Co CEO confirmed that some of the job losses will include employees at the retailer’s operations in Glasgow.

Andy McGeoch said: “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.

“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.

“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.

“It’s a terrible situation for them and I’m desperately sorry that we couldn’t come up with a viable plan which would have saved all the jobs.”

M&Co currently have around 60 stores in Scotland including the eight facing closures which are: Greenock, Knightswood, Girvan, Annan, Linlithgow, Gyle, Alloa and Inverurie Childrens (the other Inverurie store is remaining open).