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All UK Mothercare stores set to close as administrators called in

Mothercare


Troubled baby goods retailer Mothercare has called in administrators, putting 2,500 UK jobs at risk.

There will be a phased closure of all of its 79 UK stores, administrators from PwC said.

The UK firm “has been loss-making for a number of years”, but international franchises are profitable, PwC said.

On Monday the baby goods firm said it was “not capable” of being sufficiently profitable and that it had failed to find a buyer.

Joint administrator Zelf Hussain said: “This is a sad moment for a well-known High Street name,” adding that Mothercare “has been hit hard by increasing cost pressures and changes in consumer spending.”

“It’s with real regret that we have to implement a phased closure of all UK stores. Our focus will be to help employees and keep the stores trading for as long as possible,” Mr Hussain said.

The administration will be “disappointing for all the employees but it’s not unexpected”, said Diane Wehrle, marketing and insights director at Springboard.

Since the firm negotiated a rescue deal with lenders last year, “they haven’t changed anything fundamentally”, she said.

“The levels of investment needed to future-proof the business would have been so significant and they couldn’t make that leap,” she added.

Ultimately, supermarkets and department stores ate into their market, plus cheaper online competitors, she said.



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