M&Co slashes stores and jobs as retail cuts deepen
M&Co, one of Scotland's largest family-owned retailers, is closing 47 stores and cutting 380 jobs in a restructuring designed to safeguard its future against Covid-19 disruption.
The clothing chain will keep 218 stores and 2,200 employees after the overhaul, which will affect staff in stores and at its offices in Glasgow and London, Sky reported.
M&Co appointed Deloitte as administrators in April as it buckled under pressure during the coronavirus lockdown. The company, founded in Glasgow as Mackays in 1961 and owned by the McGeoch family, will focus on its network of high street stores in the expectation that people will shop locally rather than travel long distances.
"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," Chief Executive Andy McGeoch told Sky.
M&Co's cuts add to a string of job losses at retailers including John Lewis and Boots as Covid-19 and the resulting deep recession damaged sales. WH Smith said on Wednesday it would cut up to 1,500 jobs after Dixons Carphone announced up to 800 reductions the day before.
McGeoch said making staff redundant would be a big blow to the company. Almost a quarter of its employees have worked for the company for more than 10 years and some have been with the group for more than 30 years.
"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," he said. He said M&Co took a "huge financial hit" after it was forced to close its stores in March as the economy shut down.