The maternity and early-years retailer, Mothercare, has made a statement early this morning stating they are “not capable of returning to a level of structural profitability” and are heading for administration.
Mothercare – who currently operate 79 stores in the UK – outlined in their statement earlier this morning that the: “Furthermore, the company is unable to continue to satisfy the ongoing cash needs of Mothercare UK,”
The retailer has previously gone through aa CVA (company voluntary arrangement) which shut 55 of its shops, but the company has revealed that stores will continue to run as usual for now despite this mornings news.
Explaining the purpose of their statement, Mothercare said: “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.”
Mothercare currently has 2,000 staff who are working part-time and 500 full-time, which includes those situated in the head office.
Mothercare has been on the market looking for a buyer for its UK stores for a while; however, they have had no success so far.
The struggling retailer also operates in 40 overseas territories, however, their overseas stores are not subject to the administration as they generated a profit of £28.3m in the financial year of March 2019. In contrast, the UK retail operations lost £36.3m.