New revamp at M&S may cost £500m

MARKS & Spencer could be forced to stump up at least another £500million to fund its latest reorganisation plans, according to leading stockbroker Investec.

The money will be needed to close UK and international stores over the next five years as the company reshapes its business to focus on food and its more profitable sites.

An Investec report says the plans will cut UK clothing and home retail space by a million sq ft by 2022, about ten per cent of the total.

Marks & Spencer chief executive Steve Rowe is also shelving brands Indigo, Collezione and North Coast in 2017 to focus on the core Marks & Spencer range as well as Per Una, Autograph and Blue Harbour.

It follows a £2billion restructuring under former boss Marc Bolland, who overhauled the distribution network and spent £150million on the M&S website.

Sources said morale is at a low ebb after the firm unveiled a plan to cut 525 head office jobs and close stores. Many analysts believe the retailer is unlikely to increase profits again until at least 2021.

But there is hope that the current cold spell has boosted clothing sales across the high street as well as at Marks & Spencer.

Investec added: ‘To his credit, Mr Rowe has shown he is prepared to make difficult choices and has taken a number of decisions which previous CEOs avoided.’