Future of 79 Mothercare stores at risk as company appoints administrator
By James Young | 4th November 2019
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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