Popular value fashion retailer M&Co has collapsed into administration putting nine North East stores at risk, amid reports one is set to close.
It was revealed yesterday that the high-street brand had called in the administrators after a sharp rise in costs put increased pressure on its accounts.
The announcement puts the chain’s nine North East stores in Northallerton, Ripon, Whitby, Chester-le-Street, Hexham, Berwick, Alnwick, Billingham and Guisborough at risk of closure.
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The Northern Echo understands staff at the chain’s Northallerton branch were told on Saturday (December 10) morning that it would be closing its doors.
It comes just a week after the Northern Echo’s sister titles the Bournemouth Echo and Worcester News reported that stores in Dorset and Droitwich had closed at short notice.
The Dorset store closed on Saturday November 26, and posted online to say they had only been given news of the closure a day earlier.
It is not clear whether staff at other North East stores have been told if they too will be closing.
In 2020 M&Co made the decision to close 47 stores across the country, including those in Bishop Auckland, Houghton le Spring, Durham, Ashington, Yarm, and Knaresborough. The closures resulted in the loss of 380 jobs nationally.
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A spokesman for administrators Teneo Financial Advisory Limited, told fashion business magazine Drapers: "Like many retailers, the company has experienced a sharp rise in its input costs, which has coincided with a decline in consumer confidence leading to increased pressure on cash flows and trading losses.
"No immediate redundancies have been made and the joint administrators are exploring a potential sale of the business in an accelerated timeframe, during which time the company will continue to trade from its stores and website."
The Northern Echo contacted the Northallerton store directly but staff were unable to offer a comment.
We have contacted M&Co's Head Office for a statement.
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