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Mothercare UK Files For Administration

Mothercare appears to be the latest high street casualty with their UK operations filing notice of intention to appoint Administrators. 

The struggling retailer shut 55 shops last year as part of a CVA. This appears to have not been sufficient to save the company and reports state that KPMG have recently been brought in to consider further rent reductions, closures and restructure. However, it appears that a business sale is now the preferred approach. 

Mothercare UK has 79 stores still open in the UK and employs 2,500 people with 500 of them being full-time employees. If a buyer cannot be found as part of the Administration it will put significant jobs at risks. The business is continuing to trade in the meantime.

In their financial year to March 2019, its international business generated profits of £28.3m, whereas the UK retail operations lost £36.3m. Mothercare’s share price dropped to a record low of 7.06, down from 10.80 at the start of the day.

Mothercare announced that "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,"

MORE WOES ON THE HIGH STREET - CLINTON CARDS

Other reports emerged over the weekend that Clinton Cards is entering discussions with landlords around store closures and rent reductions as part of a CVA proposal. KPMG have been appointed to deal with the CVA proposal.

Posted: 04.11.2019
Tags:  announcement
 


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