Wick and Thurso shops under threat as fashion retailer M&Co calls in administrators
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The M&Co shops in Caithness face uncertainty after the fashion retailer went into administration on Friday (December 9) blaming rising costs and a "decline in consumer confidence".
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.
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.”
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.
A Facebook post on the pages for the Wick and Thurso branches said: "To all of our amazing customers, this is not an easy message to write...
"M&Co have entered into administration as of the 9th of December 2022. We are hoping for a positive outcome, and that all of our stores will be saved, but in the meantime there are a few things we would like to make our customers aware of."
The post goes on to state that in store purchases can be returned within a set number of days but that loyalty cards and vouchers will not be accepted during the administration. The loyalty scheme is closed to further sign ups, and purchases will no longer qualify for loyalty points, it further states.
"We are happy to accept the full value of gift cards/refund cards in store, provided the value of the gift card/refund card is no more than half the total price of items purchased. No new gift cards are being sold, and no balances added to existing gift cards. Unfortunately, the use of gift cards for online orders have been suspended."
The joint administrators state they are honouring orders "in process at the time of the administration" but that all policies are being "kept under review and are subject to change".
The social media post says: "We hope you will appreciate this is also a difficult time for staff working in the stores and we ask for respect and understanding when raising an issue. Thank you for your understanding at this difficult time, and we hope to see you all over the festive period."
Headquartered in Scotland, M&Co is one of the UK’s largest privately-owned fashion and lifestyle retailers with 170 stores across the UK and an e-commerce platform, employing 1910 staff.
