1. News
July 1, 2020

M&Co employs Deloitte to seek new investors

Scottish fashion and homeware chain store M&Co, a subsidiary of Mackays Stores Group, has employed Deloitte to search for new investors amid a sales slump.

By Jessica Paige

Scottish fashion and homeware chain store M&Co, a subsidiary of Mackays Stores Group, has employed Deloitte to search for new investors amid a sales slump.

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How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
  • Assess and showcase the growth potential for various Industries in the target economy
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The company, which employs 2,700 people, is considering a partial or outright sale to be undertaken through pre-pack administration, according to Sky News.

The search for new investors comes after a revenue shortfall of £50m. Sources have said that employees have been spoken to about the potential restructuring.

M&Co CEO Andy McGeoh expressed optimism in a memo and saying that changing retail patterns will see shoppers visiting local stores.

M&Co shops across England, Scotland, and Northern Ireland have reopened, except for those in Scottish shopping centres.

M&Co would not provide comment, but a representative of the company told Retail Insight Network that it has “no gripes” regarding the allegations made by Sky News.

Where did it go wrong for M&Co?

Like of other fashion retailers including Cath Kidston, Debenhams, and Monsoon and Accessorize, M&Co’s downfall had been exacerbated by the UK lockdown, which was enforced in March to slow the spread of the Covid-19 coronavirus pandemic.

The forced closure of non-essential retail stores was the final straw for many already-struggling retailers, and M&Co had been in financial decline even before the lockdown.

M&Co recorded earnings of £8.7m before tax and an operating profit of £3.6m, a 40% drop, in the year to February 2019. In the same period, net debt went from £19m to £8.7m.

This decline mirrors the pattern many high street bricks-and-mortar retailers have seen in recent years due to a changing retail landscape and the success of e-commerce over physical retail.

Others shops entering into administration

Today also marked UK-based fashion chain TM Lewin and furniture chain Harveys entering into administration.

At TM Lewin, 600 jobs have been lost as the store has said it will be permanently closing stores for the foreseeable future. Its assets have been bought by Torque Brands.

At Harveys, 240 jobs have been immediately lost while 1,300 more are at risk. Over 100 stores will remain open during its restructuring, but 50 stores are set to permanently close. Harveys has appointed PwC as administrator.

Free Report
img

How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
  • Assess and showcase the growth potential for various Industries in the target economy
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.