Squire Patton Boggs’ Financial Services Practice has advised Aurelius Finance Company on a funding package to support M&Co, one the UK’s largest privately-owned retailers.
Founded half a century ago as Mackays and rebranded as M&Co in the 2000s, the family-run Glasgow headquartered clothing retailer has grown organically to almost 300 shops across the UK. Like many retail businesses suffering during the Covid-19 pandemic, M&Co experienced a significant revenue shortfall in recent months and in July was forced to call in administrators.
Aurelius Finance Company is an alternative lender, providing debt solutions to UK and European companies who are unable to access the mainstream banking market for some or all of their capital requirements.
A multi-practice team led by partner Paula Laird assisted by Tom Dell’Avvocato in London, with support from Devinder Singh on restructuring and insolvency issues and Andrew Chapman and Pippa Botham on real estate matters, completed a package of financing by Aurelius Finance Company for M&Co. Under an extremely compressed timeframe, the team acted for AFC, taking a co-lending position, in order to provide working capital and ultimately help preserve the core of the business and some 2600 jobs.
“It was a very challenging mandate, exacerbated by time pressures,” said Karun Dhir of Aurelius. “With the strategic advice and tireless support of the team at Squire Patton Boggs, we have completed a package that will assist M&Co through this period.”
“We are extremely pleased to have supported Aurelius on this transaction which will see the majority of M&Co’s stores stay open and importantly its main workforce keeping their jobs,” commented Paula Laird. “Solutions need to be found for the UK retail sector in particular because it is facing unprecedented strain and special situations like this will likely increase in the direct and ABL lending market space in the next 12 months.”