NEWS

Breaking News: Mothercare UK set to call in administrators

Published on: 4th November 2019

The retailer has just announced that it has been forced to call in administrators after a UK retail operation loss of £36.3m last year.

Mothercare has already gone through a CVA and closed 55 shops, now a further stores are at risk. The company said its 79 remaining UK stores were “not capable of returning to a level of structural profitability and returns that are sustainable for the group”.

It said stores would continue to trade as normal for the time being.

A spokesperson added: “Furthermore, the company is unable to continue to satisfy the ongoing cash needs of Mothercare UK.”

The company’s 2,500 UK-based employees would be at risk of redundancy if no buyer can be found through an administration process.

However, Sky News has reported that a decision to appoint administrators in the UK would not involve the wider Mothercare international operations. Mothercare’s overseas business has more than 1,000 stores in more than 40 countries and remains profitable. The parent company is in talks with lenders about further refinancing in order to secure its future.

Mothercare said the UK administration filing was a “necessary step in the restructuring and refinancing of the group”.

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