More than 90 former M&Co employees are set to take legal action over redundancies.
Glasgow-based M&Co Trading entered into administration in December, blaming rising input costs coinciding with a decline in consumer confidence, which led to increased pressure on cash flows and trading losses.
The clothing retailer's brand and intellectual property were bought a few months later, but its 170 stores and almost 2,000 staff were not part of the transaction and began closing after Easter.