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Mothercare UK prepares to appoint administrators

Baby goods retailer Mothercare has announced plans to call in administrators, risking 2,500 jobs across its UK stores.

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The company said that, having undertaken a “root and branch review”, it has concluded 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”.

 

It added that the company is “unable to continue to satisfy the ongoing cash needs of Mothercare UK".

 

The stores will continue to trade as usual for the time being, it said.

 

The announcement also affects Mothercare Business Services, which provides certain services to Mothercare UK.

 

The retailer has already been through a company voluntary agreement (CVA), in which it closed 55 of its stores across the UK.

 

“These notices of intent to appoint administrators in respect of Mothercare UK and Mothercare Business Services are a necessary step in the restructuring and refinancing of the group,” the company said. “Plans are well advanced and being finalised for execution imminently.”

 

Around 500 of the jobs at risk are full-time posts, including head office roles, with the remaining 2,000 part-time.

 

The Turnaround, Restructuring and Insolvency (TRI) Conference takes place on November 13 at the London Hilton Bankside. Visit its site to view the agenda and book your place.

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