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Gloucestershire Business News

Future of 79 Mothercare stores at risk as company appoints administrator

Mothercare have announced that they are appointing an administrator to look at a complete restructure of their UK retail portfolio with the future of the firm's 79 stores at risk.

In an announcement to the Stock Exchange this morning, Mothercare PLC said: "It has become clear that the UK Retail operations of the Group are not capable of returning to a level of structural profitability and returns that are sustainable for the Group."

The statement also said that attempts to find a new owner had been unsuccessful with the firm it is not "attractive enough for a third party partner to operate on an arm's length basis."

The statement added: "Furthermore, the Company is unable to continue to satisfy the ongoing cash needs of Mothercare UK."

Mothercare UK posted a loss of £36.3million for the year ended March 2019, while the global Mothercare Group posted profits of £28.3million.

According to this morning's statement the company's primary objective is to "preserve value for as many stakeholders as possible" as they seek to optimise long-term revenue for the group.

There was little mention of what could happen to the 79 stores - including the outlet at Gloucester's St Oswalds Road - or the 2,500 staff currently employed by Mothercare.

The statement added: "These notices of intent to appoint administrators in respect of Mothercare UK and MBS are a necessary step in the restructuring and refinancing of the Group.

"Plans are well advanced and being finalised for execution imminently. A further announcement will be made in due course."

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