M&Co to close 47 stores and axe 380 jobs in major shake-up
FASHION chain M&Co is to close 47 stores and axe 380 jobs as part of a major restructuring plan.
The retailer blames the coronavirus outbreak for a drop in footfall as shoppers dodge travelling "longer distances" on public transport.
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The job losses will affect shop workers across the UK, as well as staff at its London and Glasgow offices.
The high-street chain says 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 1,500 employees are at risk of redundancy.
While William Hill today said it has permanently closed 119 stores.
What M&Co stores are closing?
THESE are the M&Co stores that are closing:
- Alloa
- Annan
- Ashington
- Batley Mill
- Bicester
- Bishop Auckland
- Bodmin
- Bourne
- Carlisle
- Cowes
- Durham
- Elgin Kids
- Frome
- Girvan
- Gloucester
- Great Malvern
- Greenock
- Gyle
- Harpenden
- Helston
- Houghton le Spring
- Huntingdon
- Inverurie Childrens
- Kettering - New
- Kidlington
- Knaresborough
- Knightswood
- Leighton Buzzard
- Linlithgow
- New Barnstaple
- New Bideford
- New Whitchurch
- Newmarket
- Oldham
- Princes Quay
- Redruth
- Ross on Wye (Labels)
- Sevenoaks
- Sherbourne
- Stamford
- Tamworth
- Trowbridge
- Uxbridge
- Wantage
- Waterlooville
- Witney
- Wooton Bassett
- Yarm
The fashion chain is yet to announce which stores are at risk of closure.
M&Co appointed finance company Deloitte back in April to help find a way to save the ailing business.
The fashion company had been struggling even before the impact of the pandemic hit the high street.
Earlier this year, 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 as lockdown measures on the high street were eased.
M&Co says it has continued to "explore every possible option" to make sure the business doesn't go under in light of the ongoing coronavirus challenges.
What are my redundancy rights?
BEFORE making you unemployed, your employer should still carry out a fair redundancy process.
You are entitled to be consulted on the redundancy lay-off first and to receive a statutory redundancy payment, as long as you've been working somewhere for at least two years.
How much you're entitled to depends on your age and length of service, although this is capped at 20 years. You'll get:
- Half a week’s pay for each full year you were under 22,
- One week’s pay for each full year you were 22 or older, but under 41,
- One and half week’s pay for each full year you were 41 or older.
Sadly, you won't be entitled to a payout if you've been working for your employer for fewer than two years.
There should be a period of collective consultation as well as time for individual ones if your employer wants to make 20 or more employees redundant within 90 days or each other.
You are also entitled to appeal the decision by claiming unfair dismissal within three months of being let go.
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," he continued.
"It's a terrible situation for [affected staff] and I'm desperately sorry that we couldn't come up with a viable plan which would have saved all the jobs."
It's the latest blow to the high street as a whole, which was also battling to survive before the coronavirus crisis hit.
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Yesterday, Pizza Express warned that it may close 67 UK restaurants putting 1,100 jobs at risk.
Currys PC World plans to cut 800 jobs as part of a shake-up of its store management structure, it said on Tuesday.
And earlier this week, Hays Travel announced that it would make 878 staff redundant due to the impact of the pandemic on the travel industry.