A fashion retailer has gone into administration for a second time.
M&Co, which has three stores in Merseyside including Heswall, West Kirby and Formby, has collapsed into administration for the second time in just over two years. The clothing brand currently employs 1,910 staff and has around 170 shops across the UK, reports the Mirror.
Financial advisory firm Teneo confirmed it had been called in as administrators on Friday. It said M&Co had collapsed under a "sharp rise" in costs and an "increased pressure on cash flows and trading losses".
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In 2020, the fashion brand also collapsed but were immediately bought back by the family that built it up. A notice on M&Co's website said how administrators were appointed on December 9.
It said: "Adele MacLeod, Gavin George Scott Park and Robert James Harding of Teneo Financial Advisory Limited were appointed Joint Administrators of M&Co Trading Limited (“the Company”) on 9 December 2022.
"The affairs, business and property of the Company are managed by the Joint Administrators. The Joint Administrators act as agents of the Company and contract without personal liability."
When a business enters administration, it doesn't necessarily mean it will close down. The control of the company is passed to the appointed administrator who will look at how to sort its debt and other financial difficulties.
Companies can be bought out of administration too. If a company in administration can't be saved, then it is normally liquidated and its assets sold off to pay its debts.
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