ao link
0 £0.00
This item was added to your basket
Powered by
Credit Strategy homepage

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.

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.

Please login to continue reading this article.

Not a member?

Become a member

FREE registration. No credit card required

Register now
  • Stay up-to-date with industry news and appointments
  • Hear about events first
  • Read 1 free Premium article per month

Become a premium member

From as little as £3.48 per week

Become Premium
  • All the perks of a standard member plus:
  • Access to the entire Credit Strategy website
  • 12 months subscription to Credit Strategy Magazine
  • 25% discount to all conferences
  • Exclusive access to Premium Member only roundtables
  • 50% off award entry fees

LATEST INDUSTRY NEWS STRAIGHT TO YOUR INBOX

READ NEXT

Corporate insolvencies up 63% in June 2021

Corporate insolvencies up 63% in June 2021

Hurricane Energy net free cash position "proves liquidity" 

Hurricane Energy net free cash position "proves liquidity" 

Greensill failure doesn’t demonstrate need for regulation, says Treasury Committee

Greensill failure doesn’t demonstrate need for regulation, says Treasury Committee

Credit Strategy
LinkedIn page

Member of

Did you find our website useful?

Thank you for your input

Thank you for your feedback

creditstrategy.co.uk – an online news and information service for the UK’s commercial and consumer credit industry. creditstrategy.co.uk is published by Shard Financial Media Limited, registered in England & Wales as 5481132, Axe & Bottle Court, 70 Newcomen St, London, SE1 1YT. All rights reserved. Credit Strategy is committed to diversity in the workplace. @ Copyright Shard Media Group