M&Co creditor dividends likely ‘less than a penny in the pound’

Failed retailer M&Co’s unsecured creditors are owed least £40.6 million, including money owed to its suppliers, and any dividend paid to them will be “extremely low”, according to Companies House filings by its administrator Teneo.

"On present information, it is unlikely that sufficient funds will be realised to enable any distribution to be made to unsecured creditors,” Teneo said in its Companies House report.

It continued: "We estimate that a dividend under the prescribed part is likely to be made to unsecured creditors, however, having regard to the size of the claims against the company, the amount of any such dividend is likely to be very low, i.e, less than a penny in the pound."

M&Co fell into administration last year citing post-pandemic challenges.

The company was rescued by AK Holdings, yet this deal did not include the aquisition of M&Co’s 170 physical locations.

Clothing retailer Peacocks has since bought up 20 of the vacant outlets.

M&Co began store closures last month, putting up to 2,000 jobs in jeopardy.

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