M&Co, DW Sports are latest retailers to shut stores, shed jobs
Aug 5, 2020
The latest bad news for the UK on jobs and store closures comes from M&Co and DW Sports. Scotland-based retailer M&Co has gone into administration and been bought back by its founding family in a pre-pack deal. But the ‘new’ owners will shut 47 of its shops with 215 staying open and 2,600 jobs continuing. However, that means almost 400 jobs will go.
CEO Andy McGeoch said the business was likely to “remain under severe pressure from the ongoing challenges of Covid-19” had it not taken action to restructure.
He said the administration decision wasn’t one he took lightly, “but it gives us a sustainable basis from which to rebuild, with the majority of our staff keeping their jobs.”
Meanwhile, DW Sports is also entering administration with 1,700 jobs at risk as a result.
The company operates 75 sports stores and 73 gyms across the UK with the firm working with administrators BDO to save the gyms. But there’s no hope for the stores and they’re all closing. The company also owns 43 Fitness First gyms but these aren’t part of the administration process.
Again, Covid-19 has been blamed with CEO Martin Long talking of “a high fixed-cost base and zero income”.
Some 25 of the shops have already closed, with the rest now operating closing down sales. The webstore has also shut.
The company usually generates £15 million a month but has seen zero revenue since the spring, despite having a £3 million monthly wage bill.
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