Baby goods retailer Mothercare has filed a notice of intent to appoint administrators to the company’s active trading subsidiary, Mothercare UK and Mothercare Business Services Limited which provides certain services to Mothercare UK, putting 2,500 jobs at risk.
The company operates global brand business generating over £500m 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 £28.3m internationally whereas the UK retail operations lost £(36.3)m,”said in the statement.
”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,” the company stated.