Retailer Mothercare goes into administration
Struggling retailer Mothercare has gone into administration and will close all 79 of its UK stores.
The news comes after the baby goods retailer said it was “not capable” of running to a sufficient profit and efforts to find a buyer had failed.
Mothercare chairman Clive Whiley said that the business was “unable to avoid" administration, a decision which came with “deep regret and sadness”.
Whiley added: “The board concluded that the administration processes serve the wider interests of ensuring a sustainable future for the company, including the wider group's global colleagues, its pension fund, lenders and other stakeholders.”
Mothercare said that its pension scheme will now be transferred to its business overseas.
Administrators PwC say that Mothercare’s international business remains profitable, but its UK operations have been making losses “for a number of years”.
The administrators added that a phased closure of all UK stores will follow, with 2,500 jobs now in jeopardy.
Joint administrator Zelf Hussain said: “[Mothercare] has been hit hard by increasing cost pressures and changes in consumer spending. It is with real regret that we have to implement a phased closure of all UK stores.
“Our focus will be to help employees and keep the stores trading for as long as possible”.
Hussain added that the news was a “sad moment for a well-known High Street name”.
In the wake of the news, Mothercare said that talks were ongoing over potential UK concession stores and the possibility of selling goods online under the brand.