FASHION chain M&Co is to close 47 stores and axe 380 jobs as part of a major restructuring plan.
It blames the coronavirus outbreak for a drop in footfall as customers dodge travelling “longer distances” to shopping centres on public transport.
The high-street chain said it will continue to operate with 218 stores and 2,200 employees after completing a restructuring.
The job losses come on the same day that WH Smith announced that 1,500 employees are at risk of redundancy.
Today, William Hill also said that it has permanently closed 119 stores.
M&Co appointed finance company Deloitte back in April to help find a way to save the ailing business.
The fashion company has been struggling even before the pandemic hit the high street.
It reported a 40 per cent drop in operating profits to £3.6million for the year to February 28 2020.
The majority of its stores reopened in June but it has continued to “explore every possible option” to make sure that the business doesn’t go under in light of the ongoing coronavirus challenges.
Andy McGeoch, chief executive officer of M&Co, said: “”It quickly became clear the best way to save most jobs and most stores was to enter administration, with a new company acquiring the assets of the old business, and this process has now been finalised.
“It’s not a decision we took lightly, after more than 50 years of trading, but it gives us a sustainable basis from which to rebuild, with the majority of our staff keeping their jobs and 218 stores in high streets across the country remaining open.
“The most difficult part of this process is undoubtedly seeing around 380 colleagues in stores and at our Glasgow and London operations leaving the business.
“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.”
Did you miss our previous article…
https://www.hellofaread.com/money/parents-struggle-to-talk-to-kids-about-money-as-they-dont-feel-confident-about-their-own-finances/
