M&Co is reportedly nearing a pre-pack administration deal which would see the chain sold back to its original owners.

The struggling fashion retailer is set to be sold back to its original Scottish owners, the McGeoch family, in a pre-pack insolvency deal, Sky News reported.

The deal will include the closure of 50 of the retailer’s 260 UK stores, affecting hundreds of jobs. The deal should, however, protect 2,700 staff. 

Deloitte is said to be handling the deal, which could be announced today.

M&Co is the latest in a string of fashion retailers to launch a pre-pack administration this year alongside, Cath Kidston, Monsoon Accessorize and Go Outdoors. 

The majority of M&Co’s stores have reopened since lockdown regulations were relaxed with the exception of 11 in Scottish shopping centres and not permitted to reopen yet.

Read more: Deep dive - Can fashion ever recover from coronavirus?

UK fashion sales will fall between 35% and 46% in 2020, according to McKinsey, which predicts that a third of global fashion players will not survive the coronavirus crisis. Read our latest deep dive to discover what’s next for the hard-hit clothing sector.