Mothercare has become the latest in a line of High Street retailers facing closure
The Company announced this morning that it was filing a notice in court to appoint administrators to Mothercare UK and its support arm Mothercare Business Services (MBS).
Mothercare’s UK retail division employs 500 full-time staff and around 2,000 workers on a part-time basis.
Stores are expected to continue trading for now.
Mothercare’s statement said: “Since May 2018, we have undertaken a root and branch review of the group and Mothercare UK within it, including a number of discussions over the summer with potential partners regarding our UK Retail business.
“Through this process, it has become clear 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 for the group as it currently stands and/or attractive enough for a third party partner to operate on an arm’s length basis.
“Furthermore, the company is unable to continue to satisfy the ongoing cash needs of Mothercare UK.
“These notices of intent to appoint administrators in respect of Mothercare UK and MBS are a necessary step in the restructuring and refinancing of the group.
“Plans are well advanced and being finalised for execution imminently.”
Labour’s Shadow Business Secretary Rebecca Long Bailey said:
“Mothercare disappearing from our high streets would be a huge loss to the new parents who rely on it and the thousands of workers whose jobs are at risk. The government must urgently meet with unions and the company to safeguard these jobs.”
