- Prachi Singh |
Struggling baby products retailer Mothercare plc is set to appoint administrators putting several jobs at risk. The company announced through a statement that notices of intent to appoint administrators to Mothercare UK and Mothercare Business Services (MBS), which provides certain services to Mothercare UK, are being filed with the court today. It added that the company and its other subsidiaries are not covered by these notices of intent.
The company further said: “Since May 2018, we have undertaken review regarding our UK Retail business. Through this process, it has become clear that the UK Retail operations of the group, which 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.”
However, the company’s global brand business generates over 500 million pounds of revenues each year from over 1,000 stores internationally in over 40 territories in which the Mothercare brand operates. In the financial year ended March 2019, the brand generated profits of 28.3 million pounds internationally whereas the UK retail operations lost 36.3 million pounds.