M&Co shops sold but business continuing to trade in far north
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THE M&Co shops in Caithness have been sold for a reported £320,000 but the business is continuing to trade in the far north.
The premises in Thurso and Wick, which sell women's, men's and children's clothing as well as homeware products, were among nine that were put up for auction after owner Meridian Realisations was put into administration last month.
But the company bought back most of its assets in what is known as a pre-pack deal – an insolvency procedure which allows a firm to sell itself, or its assets, before it appoints an administrator, without affecting its day-to-day operations. The deals are controversial as debts are written off but it is said they can provide the best returns for creditors, by minimising disruption to trade and reducing the cost of insolvency.
The shops in Rotterdam Street, Thurso, and High Street, Wick, went under the hammer and, according to the Acuitus auction website, sold for £220,000 and £100,000 respectively on September 23, although no details are known about the new owners.
A spokeswoman for M&Co stressed the company is continuing to trade in Caithness and is holding discussions about a rental deal.
"We intend to keep trading in Wick and Thurso and are in talks with the new landlords," she said.
Other properties which were also sold at auction include stores in Nairn, Saltcoats, Peebles, Hawick, Wishaw, Galashiels and Girvan. They made between £50,000 and £231,000.
The changes at M&Co mean its number of stores has been reduced from 265 to 218, with 380 staff being made redundant, leaving a workforce of about 2200. It is thought the coronavirus pandemic played a part in the company's decision to go into administration.
The firm, which is based in Renfrew, appointed financial consultants Deloitte in April to search for new investors following a sales slump.
The business first opened in Paisley in 1961, trading as Mackays Drapers, and by 1969 it had 50 stores.
The company was rebranded as M&Co in 2003 and launched online in 2006.
