Hopes for a deal after 'devastating news' about fashion retail shops in Wick and Thurso
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Local reaction to the news that M&Co shops in Wick and Thurso face an uncertain future after administrators were called in raise hopes that a buyer might be found.
The fashion retailer went into administration on Friday, blaming rising costs and a “decline in consumer confidence”, but the Caithness Chamber of Commerce hopes jobs can be saved if a deal can be made.
Trudy Morris, chief executive of the organisation which supports local businesses, said: “This is devastating news for our community as M&Co has been a feature of our high streets for many years. It is also terrible news for staff right before Christmas. We hope a deal can be made to save jobs and retain a retail presence here in Caithness.
"Whilst online shopping is popular, local businesses have a meaningful and sustainable impact on making rural communities a vibrant place to live and work.”
Wick and East Caithness councillor Raymond Bremner had similar hopes for a last-minute deal being made to save local jobs.
"I’m really sorry to hear about M&Co going into administration and for the staff this will affect – especially at this time of the year," he told the Groat.
"I really hope that there is an interested buyer that will save the jobs and maintain the high street presence. Our high streets are being continually impacted country-wide by challenges including online buying and the energy and cost-of-living crisis will be further impacting footfall."
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Wick and Thurso shops under threat as fashion retailer M&Co calls in administrators
Wick provost and local councillor Janet McEwan said she was saddened by the news. "It’s a very sad day for M&Co and Wick. M&Co has been in Wick for over 30 years, it will be a sorry loss to the town and their loyal customers. I am hoping someone might take over the business."
M&Co currently has around 180 UK stores, including shops in Wick and Thurso, and has appointed Teneo Financial Advisory Ltd as the administrator of its affairs, business and property. M&Co fell into administration in August 2020, when it was bought back by its Scottish owners the McGeoch family in a pre-pack deal that saw it close 47 stores and cut more than 300 jobs. The company has insisted no jobs will be lost immediately, with its 45 Scottish stores and website continuing to trade as normal.
The Renfrewshire-based company, which used to be known as Mackays, is one of Scotland's best known clothing chains and currently employs 1910 staff in its UK stores.
Gavin Park, a joint administrator with Teneo, 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.
"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. 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.”
Addressing the challenges facing businesses, Trudy Morris said in a featured news report from August this year: “Since the start of 2021, businesses could see this crisis coming and have been consistently telling us that they are facing unsustainable rises in costs. The impact of these challenges on businesses, consumers and our communities must be tackled with immediate action.
“The scale of the crisis has reached a tipping point and with so many on the brink, we simply cannot afford any more inaction. From the UK government, businesses need to receive emergency support for spiralling costs through grant funding, energy price caps and a reduction in VAT on energy bills. Urgent reform of the Shortage Occupation List is needed immediately to address labour market supply and skills shortages.
“The Scottish Government must also take action within its powers to alleviate the cost burden on businesses and households, including pausing burdensome regulations and providing direct financial support.”
