Bankruptcies and store closures continue to be hot topics in August as well.
And it will be the same story in the coming months as well considering the massive impact coronavirus has had on the fashion retail sector in last 5 months.
While Sunday saw renowned US retailers Tailored Brands and Lord & Taylor file for Chapter 11, there are now reports of Scottish fashion retailer M&Co coming close to a pre-pack administration deal.
The deal will see the fashion retailer sell back its assets to the McGeoch family, which owns the value fashion chain.
As a part of the pre-pack administration deal, 50 of retailer’s stores are going to be permanently shut. That would be an end to several jobs, but the McGeoch family’s only focus at present is to save the retailer from getting liquidated.
Though the retailer hasn’t confirmed exactly how many jobs will be hit due to the store closures, as per media reports, majority of its 2,700 employees would retain jobs.
Back in June 2020, M&Co had brought in Deloitte to review business options that also included partial or full sale through pre-pack administration.
Meanwhile Aurelius, a renowned investment firm, has reportedly agreed to fund the fashion retailer so as to help the latter successfully combat the pandemic that seems to be devouring a retailer every day. We will keep you posted about latest developments.
M&Co, which is known for its menswear, womenswear and kidswear, was set up in 1834 and generates revenue of £193 million.