Documents reveal for the first time events surrounding the collapse of the company founded in 1834 with the closure of all 168 stores, and that unsecured creditors face losing tens of millions of pounds.
Recently lodged papers show that M&Co. which started its life in Paisley as a pawnbroker before entering retail in 1953 as Mackays by family owners Len and Ian McGeoch, show that more than 600 unsecured creditors will lose more than £33m.
New documents show the case moved from administration to dissolution in June and administrators’ reports set out the steps leading to the failure of the business.
Adele Macleod, Gavin Park and Robert Harding, of Teneo, were earlier appointed joint administrators in the second such event.
The firm first fell into administration during the pandemic with 47 stores and 380 jobs lost at the time.
The assets were bought back by the family on that occasion but administrators again took control in 2022.
The brand was acquired by Peterborough-based AK Retail Holdings, which owns Yours Clothing, for a sum disclosed for the first time as £2.5m and which included its online offering.
In their latest report, the Teneo administrators said: “We adjudicated all claims received and subsequently admitted 608 claims 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.
“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.”
Pension
The administrators also said regarding the pension fund: “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. Holdings has not been repaid in full in respect of its floating charge security during the administration.”
The administrators described similar difficulties faced by high street chains up and down the country.
After a series of rescue attempts, the Glasgow-founded Quiz fashion retailer finally collapsed this year with all stores closed and 360 jobs lost.
Other UK brands including Claire’s and LK Bennett also closed stores earlier this year after falling into administration.
The administrators said: “Following the transaction which took place during the pandemic, and in common with other retailers, the company has suffered as a result of a drawn-out recovery in retail sales in the post pandemic period.
“In the months prior to administration, the deterioration in trading performance has been compounded by high inflation increasing the company’s cost base, and a cost-of-living crisis impacting consumer behaviour.”
By November 2022, the company had £12m of overdue supplier payments, and in expectation of a winding up petition and the administrators were appointed by the directors.
Secured creditor HUK’s debt of £3.3m has been repaid in full and HSBC’s secured debt of £8.7m was also repaid. The administrators said £2.6m have been paid in full to HMRC.
The administrators added: “It was necessary to make ‘ransom’ payments to certain third-party creditors whose supplies were considered to be critical to trading strategy, to ensure that services were not discontinued. Payments to ransom creditors totalled £196,000.”