// M&Co is looking for new backers after a £50 million revenue shortfall
// The shortfall came as a result of coronavirus
// The retailer is considering a pre-pack administration
M&Co is reportedly seeking new backers after experiencing a £50 million revenue shortfall as a result of the coronavirus pandemic.
The value fashion retailer is currently working with Deloitte and is understood to be considering options including a partial sale or full sale via a pre-pack administration, Sky News reported.
Meanwhile, it has also approached a number of turnaround funds and private equity firms.
READ MORE: M&Co to open over 60 new stores by 2022
The retailer has shown optimism about its prospects, adding that changing retail patterns mean shoppers are likely to choose to visit stores in local towns rather than travel long distances.
M&Co currently has 262 stores, the majority of which have recently been reopened after lockdown restrictions were eased.
The retailer has 2700 staff across its stores.
Founded in 1961, M&Co is owned by the McGeoch family and is run by chief executive Andy McGeoch.
In its most recent results which showed trading for the year to February 28 2020, the retailer reported a 40 per cent drop in operating profits to £3.6 million.
Net debt reduced from £19.2 million to £8.7 million in the year.
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