Skip navigation

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."

Related Articles

Coronavirus LIVE Updates: The latest news from across Gloucestershire on Thursday, May 28 Image

Coronavirus LIVE Updates: The latest news from across Gloucestershire on Thursday, May 28

The latest important news and updates from across Gloucestershire as the coronavirus crisis continues.

Zoom Q&A with Alex Chalk MP - 2pm on Friday 29th May Image

Zoom Q&A with Alex Chalk MP - 2pm on Friday 29th May

Join our exclusive Q&A session with Cheltenham MP Alex Chalk.

Unanimous backing for Cheltenham's Christmas Image

Unanimous backing for Cheltenham's Christmas

Plans for an ice rink and expanded Christmas Market in Cheltenham have been given the all clear.

Kier wins contract for £97m project Image

Kier wins contract for £97m project

Kier Construction has been awarded the contract to build a £97million hospital unit.

Copyright 2020 Moose Partnership Ltd. All rights reserved. Reproduction of any content is strictly forbidden without prior permission.