JOB losses resulting from the closure of Ayrshire's M&Co stores will be a "huge blow" for communities throughout the region and act as further proof of "struggling" high streets.
The area's MSPs have responded to the news that five Ayrshire branches of the clothing retailer are among the 170 shops across the UK due to shut around Easter time, with almost 2,000 jobs set to be lost.
The Renfrewshire-based company entered administration for a second time in December and although AK Retail Holdings - which owns Yours Clothing and Long Tall Sally - purchased the brand last week, the deal does not include the physical stores, meaning branches in Saltcoats, Irvine, Ayr, Troon and Largs will soon close.
Administrators blamed trading challenges on a "sharp rise in input costs", which has coincided with a "decline in consumer confidence".
Kenneth Gibson, Cunninghame North SNP MSP, said: “The closure of M&Co’s iconic stores in Saltcoats and Largs, which employ dozens of local people, is a blow to both towns.
“Obviously, the best outcome would be for a buyer to be found to run the company as a going concern.
“Key issues that have impacted M&Co are high energy costs, inflation and changing consumer habits that have switched purchasing from the high street to online.
“The SNP Government’s Partnership Action for Continuing Employment (PACE), JobCentre Plus, insolvency service and redundancy payments service will work to provide support for staff who lose their employment as a result of closure.”
Confirming the news on social media over the weekend, M&Co stores throughout the country said: "Unfortunately, we haven't received the news we would have hoped for during our administration period, and would like to share this news with you.
"As we haven't received any funded, deliverable offers that would result in the transfer of the company's stores or staff to a potential buyer, this means that all of our stores will close.
"The M&Co 'brand' has been purchased, but unfortunately this does not include a future for our stores, website or staff.
"We will trade potentially until Easter, and then begin the close down process.
"We will update you closer to the time of our actual closing date."
South Ayrshire MSP Colin Smyth (Labour) said the news is a “huge blow” for local communities.
He said: “This is devastating news for staff at M&Co stores across the south of Scotland.
“This has been a dreadful couple of years for retail and the news will be the last thing they wanted to hear. My thoughts are very much with them and their families.
“Unfortunately, M&Co staff have been living with this uncertainty for a long time. In August 2020, M&Co entered administration for the first time and while a number of branches were closed that time, many re-opened.
“This is another blow for our high street and further proof that it needs as much support as possible.”
Meanwhile, North Ayrshire and Arran MP Patricia Gibson said M&Co is "yet another casualty of struggling high streets across the UK".
Very sad to hear of closure of all @mandco_fashion outlets in #Largs & #Saltcoats & across Scotland with loss of 2,000 jobs. Another casualty of changing consumer habits, soaring energy costs & soaring inflation affecting high streets across UK. More 👉 https://t.co/FPVvGt1rjp pic.twitter.com/g6JFZmRjcG
— Patricia Gibson MP (@PGibsonSNP) February 7, 2023
Katy Clark, Labour MSP for West Scotland, has previously - and unsuccessfully - requested a ministerial task force to be set up to help employees affected by the fashion chain's troubles.
Following the announcement of impending store closures, Ms Clark repeated her calls for the Scottish Government to step in.
She said: “The confirmation that thousands of jobs are set to be lost is a devastating blow for the west of Scotland in particular, meaning yet more empty stores on our high streets.
“Despite my repeated pleas, the Scottish Government has outright refused to set up a ministerial task force with the explicit purpose of protecting jobs.
“Having met with the administrators, it is clear these workers will have little support beyond redundancy.
“Given the dearth of well-paid jobs and opportunities across the west of Scotland, the Scottish Government urgently needs to step in and support these workers.”
Public finance minister Tom Arthur said: “The people affected by this development are our immediate priority.
"This is, of course, a very difficult time for the company’s staff, their families and the local areas affected.
“I met the administrators of M&CO on January 19 to discuss the situation and consider what support the Scottish Government could offer. Regrettably, the company has not secured a buyer.
“As a result, the Scottish Government is now doing what it can to support those facing redundancy in Scotland through our initiative for responding to redundancy situations, Partnership Action for Continuing Employment.”
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