Civic leaders, traders and customers have reacted with dismay at the uncertain future facing the M&Co store in Minehead after its owner went into administration, putting the future of the business in doubt.
The branch in Park Street, is the town's last remaining department story, and its possible closure, if a buyer for the 170 stores cannot be found, was described as “really bad news” and “a tragedy for the town”.
The store was trading as usual earlier this week, despite the news. A grandmother visiting the Minehead store this week looking for presents for her family, said: “I just hope it’s not true. M&Co clothes are really good value and excellent quality. It will be a real shame if the store closes - there’s nothing like it in the area. I really hope it can survive.”
Chairman of Minehead Chamber of Trade Graham Sizer said that the closure would be a tragedy for the town. He told the Free Press: “M&Co has been a major part of the fabric of the town for many years. It is the town’s largest store with a substantial frontage. It has to be hoped that a buyer is found to take the business over. Our thoughts are with the staff especially as we approach Christmas.
“It’s essential that the community, whenever it can, uses the shops in our High Street.”
Mayor, Cllr Andrew Kingston-James, said: “The threat of closure is really bad news for Minehead, as it has been an integral part of our high street for a number of years serving our community. The last few years have been a real struggle for retailers due to Covid and the town council is saddened by yet another loss.”
Customers went on to social media to express their shock. One said: “This is terrible news - such a great store and lovely staff.” Another post read: “Such sad news that another retailer goes to the administrators. Think of all those who could lose their jobs.”
One staff member wrote on Facebook: “To all our amazing customers this is not an easy message to convey. M&Co have entered into administration. We are still hoping for a positive outcome and that our lovely shops will be saved.”
A notice on the M&Co website reads: “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 affairs, business and property of the company are now managed by the Joint Administrators, who act as agents of the company and contract without personal liability.”
The store was continuing to trade as the administrators, Teneo Financial Advisory, looked for a buyer to take over the company. If successful, M&Co could remain in business, but several of its stores -including one in Dorchester - have closed in the past week.
Teneo confirmed it had been called in as administrators and said: “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 an increased pressure on cash flows and trading losses.
“No immediate redundancies have been made and the 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.”
One staff member wrote on Facebook: “To all our amazing customers this is not an easy message to convey. M&Co have entered into administration. We are still hoping for a positive outcome and that our lovely shops will be saved.”
A grandmother visiting the Minehead store this week looking for presents for her family, said: “I just hope it’s not true. M&Co clothes are really good value and excellent quality. It will be a real shame if the store closes - there’s nothing like it in the area. I really hope it can survive.”
This is the second major financial crisis the company, which employs nearly 2,000 staff, has suffered in two years. In 2020 it underwent “financial restructuring” which saw the chain being sold and immediately bought back by the McGeoch family which founded the company in Scotland in 1961. The deal resulted in 47 store closures and 380 redundancies.