M&Co Trading Limited – administration

M&Co Trading Limited, a popular value fashion retailer, entered administration on 9 December. Gavin Park, Adele MacLeod and Rob Harding of Teneo were appointed joint administrators. They cited a sharp rise in input costs, which coincided with a decline in consumer confidence leading to increased pressure on cash flows and trading losses, as the primary drivers behind the company’s insolvency. No immediate redundancies have been made, but the business has closed two stores in Dorchester, Dorset and Droitwich, Worcestershire over the past week. The business, previously known as Mackays, restructured via a pre-pack administration sale in August 2020, which saw the trade assets and the business sold to new company M&Co Trading Limited. This resulted in the closure of 47 stores and the loss of 381 jobs, while more than 2,200 jobs were saved. A number of charges are registered against the company, including two a piece in favour of Huk 103 Limited and Hsbc UK Bank PLC.