UK retail chain lost £36.3 million last year, with review finding it is unlikely to return to profitability.
Mothercare has this morning (November 4) confirmed that it is to appoint administrators for its UK retail chain.
The struggling retailer – which has 79 stores in the UK – said that the UK operations lost £36.3 million in the last financial year, with a review concluding that it is not capable of returning to ‘a level of structural profitability and returns that are sustainable’.
The company added that it was unable to continue to satisfy the ongoing cash needs of Mothercare UK.
The move does not include the profitable overseas business, which has over 1,000 stores in 40+ countries. The financial year ending March 2019 saw the brand generating profits of £28.3 million internationally.
An official statement from Mothercare this morning said that the notice of intent to appoint administrators in respect of Mothercare UK and Mothercare Business Services are a ‘necessary step in the restructuring and refinancing of the group’.
Plans are ‘well advanced’ and will be executed imminently, the statement concluded.
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