The demise of Mothercare was not the news that nursery gift suppliers wanted to hear today (Monday November 4).
The retailer has confirmed that it is to appoint administrators for its UK retail chain, with the struggling multiple – which has 79 stores in the UK – confirming that its UK operations lost £36.3m in the last financial year. A review concluded that it is not capable of returning to ‘a level of structural profitability and returns that are sustainable’. The company added that it was unable to continue to satisfy the ongoing cash needs of Mothercare UK.
The move does not include the profitable overseas business, which has over 1,000 stores in 40+ countries. The financial year ending March 2019 saw the brand generating profits of £28.3m internationally.
An official statement from Mothercare said that the notice of intent to appoint administrators in respect of Mothercare UK and Mothercare Business Services are a “necessary step in the restructuring and refinancing of the group.”
Plans are ‘well advanced’ and will be executed imminently, the statement concluded.
Top: Mothercare’s UK business officially went into administration today.