Mothercare to appoint administrators
Mothercare has announced that intends to appoint administrators for its struggling UK business.
The company has been looking to sell the business for some now after closing 55 stores as part of a CVA process. Its UK portfolio now includes 79 shops and the business employs around 2,500 people.
In the year to March 2019, Mothercare generated profits of £28.3 million internationally but its UK business made a loss of £36.3 million.
In a statement issued today, Mothercare said: “Since May 2018, we have undertaken a root and branch review of the group and Mothercare UK within it, including a number of discussions over the summer with potential partners regarding our UK retail business.
“Through this process, it has become clear that the UK retail operations of the group, which today includes 79 stores, are not capable of returning to a level of structural profitability and returns that are sustainable for the group as it currently stands and/or attractive enough for a third party partner to operate on an arm’s length basis.
“Furthermore, the company is unable to continue to satisfy the ongoing cash needs of Mothercare UK.”
Mothercare stressed that the company and its other subsidiaries are not covered by these notices of intent.
