Tue, 05 Nov 2019 | ADMINISTRATION
Baby products retailer Mothercare has announced that it will file notices of intent to appoint administrators to its UK retail arm.
The notices, relating to Mothercare UK Ltd and Mothercare Business Services Ltd, are said to form part of a wider restructuring being undertaken by Mothercare plc.
Announcing the notices, the group has emphasised that other subsidiaries would not be covered by them. Mothercare plc, Mothercare UK Ltd and Mothercare Business Services Ltd will all be free to continue trading as normal.
Mothercare said that the decision "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," it said.
The notice comes as the group undertakes a root and branch review of its business. Mothercare plc is said to be in talks with lenders over a refinancing deal to secure its trading future.
The process could lead to efforts to find a buyer for the business, with the potential for further restructuring of the whole Mothercare Group, including the structure, format and model of its UK retail operations.
Globally, the Mothercare Group generates more than £500 million in revenues each year from over 1,000 stores in more than 40 territories, with the UK business representing a relatively small segment of its overall sales.
In the year ending March 31st 2019, Mothercare plc generated £283 million in profits, while the UK arm lost £36.3 million.
The company’s UK workforce is comprised of 500 full-time employees and 2,000 part-time staff, operating across 79 outlets
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LEASEHOLD
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LEASEHOLD
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