NEWS

Mothercare to shut stores due to unsustainable rents

Published on: 29th October 2015

The retailer will shut three of its outlets in Ireland.

Mothercare-480Mothercare recently appointed an examiner to deal with the unsustainable rents that were threatening its business in Ireland.

The retailer has emerged from the three-month examination with most of its Irish store network and staff intact. However, early next year the company will close its stores at Blackrock and Jervis St in Dublin and its Cruises St outlet in Limerick.

Mothercare Ireland said the affected staff would be moved to its remaining five stores in Dublin and its second outlet in Limerick where possible, while the others would face redundancy.

Owner David Ward commented: “There is huge regret that a small number of stores were not viable and will close. The remaining stores on renegotiated leases offer the company a sustainable and secure future.”

Following the restructure, 250 jobs will remain, a net loss of 25 positions compared to its headcount earlier this year.

According to the company’s most recent annual accounts, to the end of March 2014 it lost €11,193 on sales of €35.6m for the 12-month period, having an average of 301 staff during the year.

These figures were a slight improvement on the year before, where it lost €586,016 on sales of €36.9m.

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