Sean Moran comments on Marks and Spencer store closures
Sean Moran, partner and restructuring specialist, comments on the news that Marks and Spencer are to close stores in the UK;
“This news is not surprising as M&S has experienced well publicised difficulties with its clothing and home space offering in what is a challenging time for the retail marketplace.
M&S is in a similar position to the high profile retail casualties of 2017, including Palmer & Harvey, MultiYork and Toys r Us. A combination of outdated store portfolios and the failure to adapt swiftly enough to the rise of online trading has forced businesses in this sector to restructure their operations including using a company voluntary arrangement as a mechanism to ensure business survival.
M&S seems to be taking proactive steps to assure the market that a reorganisation which focuses on consolidation of its core strengths as a strong mid-market food retailer whilst closing or downsizing less profitable stores on the retail side.”