Mothercare calls in administrators putting 2,500 jobs at risk

Mothercare has 79 stores around the UK

In recent times, Mothercare has transformed itself into an worldwide franchising group and trades from 1,000 stores in about 50 countries.

Mothercare UK's spiralling sales have been a common feature in the group's trading statements over the last few years, but senior management continued to plan for a more multichannel future in the hope the business could modernise for the digital age.

Although Mothercare's stores and website are now trading as usual, administrators will decide whether or not to close down shops while they look for a buyer or cease trading altogether.

Earlier this year, Mothercare UK also offloaded its Early Learning Centre business to rival toy business The Entertainer for £13.5 million.

Baby goods retailer Mothercare has said it plans to call in administrators to the troubled firm's United Kingdom business, putting 2,500 jobs at risk.

Its profitable franchising business outside of the United Kingdom - which represents the vast majority of Mothercare's interests - is not covered by the process.

The retailer, which has around 500 full-time staff and 2,000 part-time employees, is set to follow the likes of Bonmarche, Jack Wills and Karen Millen, which have faced problems in recent months.

More news: BTS' Jungkook questioned by police after auto crash

In the United Kingdom the company lost over £36m a year ago.

This is the latest blow for Mothercare, whose creditors approved a CVA that saw the retialer shut down 55 stores in June previous year.

Shares in the group were down 28% at 0859 GMT on Monday after it said it was clear the United Kingdom retail operations, which trade from 79 stores, were not capable of returning to a level of profitability that was sustainable for the group as it now stands.

The company runs a global business generating over £500m of revenues each year from over 1,000 stores internationally in over 40 territories. According to Sky News, administrators have been put on standby while the company reportedly finalises a restructuring plan.

Mothercare insists the administration process is "a necessary step in the restructuring and refinancing of the group", while the hard-pressed stores will continue to trade as normal for the time being as will Mothercare shares.

"Furthermore, the company is unable to continue to satisfy the ongoing cash needs of Mothercare UK", it said.

Related News:



Most liked

Biden holds steady in new poll as Warren, Buttigieg gain ground
Beto O'Rourke, who dropped out of the competition on Friday, obtained 1 % assist. Buttigieg is at 7% in the Fox News poll , while both California Sen.

Apple Q4 earnings beat expectations on strong iPhone sales
Apple also signaled its confidence that the momentum will continue in the current quarter, which spans the crucial holiday season. Q1 gross margin forecasts are also higher than expected, with margin expected to come in at 37.5% to 38.5%.

Vardy playing with a smile, says Leicester boss Rodgers
Leicester's Jamie Vardy celebrates after scoring against Crystal Palace during their EPL match in London Sunday. 'We are not here to create football players for elite clubs - we are here to try to win things.

New Microsoft Edge Logo Tries to Ditch the Internet Explorer Legacy
Microsoft's pitch to company prospects is that Edge and Bing are the internet browser and the research engine for business. After teasing the new logo, Microsoft has officially announced that its Edge browser will release on 15 January.

Pati, Patni aur Woh trailer launched
Creatively produced by Juno Chopra and produced by T-Series, Pati Patni Aur Woh arrives in theaters on December 6. Kartik plays Abhinav Tyagi/Chintu Tyagi in the film while Ananya Panday plays Woh , with a name of Tapasya.

Oliva Newton-John's iconic Grease outfit sells at auction for $405,700
The black leather jacket itself sold for around $352,000, while the pants had a high bid of $235,000. Please cop a look at that jacket's extremely plush red satin lining.

Mi Jung Hur cards 66 for lead in Taiwan Swinging Skirts
Hur, the tournament's leader after two rounds, fell to fourth Saturday five shots behind Korda with an uneven 1-under 71. Now ranked eighth in the world, Korda won the LPGA Australian Open in February for her first victory in 2019.

Adobe Releases Photoshop for iPad, But it's Still a Work in Progress
You can try it for a 30-day free trial, and after that it requires a subscription to Creative Cloud that costs US$9.99/mo. Apple and Adobe have debuted Adobe Photoshop for iPad , the app is now available on the App Store for download.

Thiel: Seahawks' good fortune of Russell Wilson
He isn't playing behind a great offensive line, and he's been limited all year long with a lack of help at the skilled positions. Buccaneers turned out to be as good as it gets in the National Football League in terms of thrills and elevated heart rates.

Colts QB Brissett suffers knee injury vs. Steelers
Reich said the sequence "wasn't a crystal-clean operation" but added he still has "all of the confidence in the world in Adam". With Conner inactive on Sunday, the Steelers leaned on Jaylen Samuels and Trey Edmunds against the Indianapolis Colts .

Iraqi leader calls for return to normalcy amid mass protests
Medical sources said at least one person was killed and a further 91 wounded in Baghdad as ongoing protests turned violent. Iraqi demonstrators burn tires as they block the road during ongoing anti-government protests, in Baghdad, Iraq.

Patriots vs. Ravens prediction, line: Baltimore will cover
Mike Nugent was released this week after a four-game stretch in which he missed three field-goal attempts and an extra point. The Ravens defense ranks 16th in passing yards allowed and ranks 21st in fantasy points allowed to receivers.

Canelo vs Kovalev Scorecards At The Time Of Stoppage Revealed
If you've landed on this page it's obviously because you want to watch the Canelo Alvarez vs Sergey Kovalev fight. Alvarez, 29, enters with a 51-1-2 record , with 35 KOs, while Kovalev, 36, has a record of 34-3-1, with 29 KOs.

Chicago Bears Defense Fails to Hide Their Biggest Flaw Again in Philly
Trubisky was sacked three times . "On the sideline, you're trying to find solutions to how to spark this offense to get going". The result was a drive that lasted 8:14 and ended with a Jake Elliott field goal to put Philadelphia ahead 22-14.

Li on top with McIlroy solid at WGC-HSBC Champions
Oosthuizen certainly has a habit for aces: this was the third of his career, including the memorable one he hit at 2016's Masters. Second-placed Perez has seen his stock rise recently thanks to a victory at the Alfred Dunhill Links Championship at St.