M&Co, the Paisley-founded fashion chain, collapsed into administration owing more than £46m, with all 168 stores closed and 1,800 jobs lost. New documents from administrators at Teneo Financial Advisory Limited reveal that over 600 unsecured creditors are set to lose more than £33m.
Collapse and Creditor Losses
The firm, which had been a major high street player since its establishment in 1834, closed all its stores by 2023. Administrators lodged papers explaining that 608 claims were admitted for a total of £34m for dividend purposes, compared with £41m in the directors' statement of affairs.
The maximum prescribed part fund of £800,000 was distributed on March 9, 2026, to non-preferential unsecured creditors, representing a dividend rate of 2.32p in the pound. Administrators noted: "Insufficient funds were realised to enable a dividend to be paid to non-preferential unsecured creditors, other than via the prescribed part distribution referred to above."
Background and Previous Administration
M&Co's journey began as a pawnbroker before entering retail in 1953 as Mackay's by family owners Len and Ian McGeoch. It was rebranded under the M&Co name in 2005 to "reflect a more modern image."
Like many retailers, the company was hit during the Coronavirus pandemic, with its first collapse into administration leading to the closure of 47 stores and the loss of 380 jobs. In December 2022, it plunged into administration for a second time, leading to the appointment of Adele Macleod, Gavin Park and Robert Harding, of Teneo, as joint administrators.
Sale and Financial Details
M&Co was purchased out of administration by Peterborough-based AK Retail Holdings, the owner of Yours Clothing, for £2.5m, including its online offering. Secured creditor HUK's debt of £3.3m has been repaid, and HSBC's debt of £8.7m was also repaid, with £2.6m being paid in full to the HMRC.
Administrators also made 'ransom' payments totalling £196,000 to select third-party creditors whose supplies were considered critical to trading strategy. Regarding the pension scheme, administrators said: "No further distributions have been made to the pension scheme following Holdings' payment of the outstanding pension scheme debt in August 2024 and its security has been satisfied."
M&Co "suffered as a result of a drawn-out recovery in retail sales in the post pandemic period," according to administrators, and was also hit by high inflation and the cost of living crisis. The case moved from administration to dissolution in June 2026, with the firm set to be officially dissolved three months later.
