Mothercare Bankers Throw Administration Out of Pram

By Gary Cutlack on at

We're not exactly Mothercare demographic here so you're forgiven for thinking that the chain went out of business in the same financial shock that took out Woolworths and that first wave of over-leveraged high street businesses more than a decade ago, but no – Mothercare still exists and employs 2,500 people. At time of writing at least.

The business has sadly confirmed reports that it's asking the administrators to step in this week, as Mothercare UK and its 79 remaining stores that have weathered a decade of constant restructuring and downsizing heads to the bankers for the last time, for a sale, closure, or all of the above.

The mess really kicked off last year when the chain initiated a Company Voluntary Arrangement process that saw it bin off around 50 of the biggest loss-making branches, but the reduction in (loveable baby) footprint and (fluffy little) headcount has not been enough to return the UK operation to anything like a sustainable position.

A spokesperson for the chain said: "...it has become clear that the UK Retail operations of the group, which today includes 79 stores, are not capable of returning to a level of structural profitability and returns that are sustainable for the group as it currently stands and/or attractive enough for a third party partner to operate on an arm's length basis."

The shop will continue to trade as normal for now if you need some, I don't know, wet wipes or something, until a buyer's found at whatever massive discount the administrator can negotiate for the sounder chunks of the business. [Sky News]