The appointment of restructuring experts from the accountancy giant raises concerns for future of Mothercare’s 79 stores and 2,500 staff.
The company is now considering closing more stores or asking landlords for rent cuts, but a sale is believed to be preferred, The Sunday Times reported.
Mothercare boss Mark Newton-Jones wants its UK stores to become franchises, to mirror its profitable international business – effectively turning the retailer into a branding and product supplier.
A spokesman said: ‘Our priority is to complete the transformation of the business.’
The retailer has been in sales talks since the summer, after striking a refinancing plan with creditors in an effort to ensure its survival. In July, Mothercare reported a 3.2% fall in first quarter like-for-like sales amid an “uncertain and volatile” market and “fragile consumer confidence”. It said that annual profitability was set to show no improvement on the prior year – when it reported a pre-tax loss of £66.6m.