Mothercare notifies intent to appoint administrators

Mothercare, Early Learning Centre

Source: Shutterstock

Mothercare has announced that it has notified an intention to appoint administrators and claimed its store estate was not “attractive enough” for third-party franchise operators.

The ailing retailer issued a statement this morning which said that Mothercare UK and its services arm would fall into administration today, while the wider international arm of the business would be spared.

It said that in the financial year ending March 2019, the wider brand generated £28.3m of profits internationally, whereas is had an operational loss of £36.3m in the UK.

Mothercare said, during a “root and branch review” of the wider group, “it has become clear that 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 group as it stands or attractive enough for a third party partner to operate on an arm’s length basis”.

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