This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.bbc.co.uk/news/business-50287153
The article has changed 14 times. There is an RSS feed of changes available.
Version 2 | Version 3 |
---|---|
Mothercare UK administration plan threatens 2,500 jobs | Mothercare UK administration plan threatens 2,500 jobs |
(31 minutes later) | |
Baby goods retailer Mothercare has said it plans to call in administrators to the troubled firm's UK business, putting 2,500 jobs at risk. | Baby goods retailer Mothercare has said it plans to call in administrators to the troubled firm's UK business, putting 2,500 jobs at risk. |
Mothercare said its 79 UK stores were "not capable of returning to a level of structural profitability and returns that are sustainable for the group". | Mothercare said its 79 UK stores were "not capable of returning to a level of structural profitability and returns that are sustainable for the group". |
"Furthermore, the company is unable to continue to satisfy the ongoing cash needs of Mothercare UK," it added. | "Furthermore, the company is unable to continue to satisfy the ongoing cash needs of Mothercare UK," it added. |
It said stores would continue to trade as normal for the time being. | It said stores would continue to trade as normal for the time being. |
Also affected is Mothercare Business Services Limited (MBS), which provides certain services to Mothercare UK. | Also affected is Mothercare Business Services Limited (MBS), which provides certain services to Mothercare UK. |
'Necessary step' | 'Necessary step' |
Mothercare has already gone through a company voluntary arrangement (CVA), which allowed it to shut 55 shops. | Mothercare has already gone through a company voluntary arrangement (CVA), which allowed it to shut 55 shops. |
"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," 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," Mothercare said. |
"Plans are well advanced and being finalised for execution imminently. A further announcement will be made in due course." | "Plans are well advanced and being finalised for execution imminently. A further announcement will be made in due course." |
Only 500 of the jobs at risk are full-time posts, including head office roles, with 2,000 part-time. | Only 500 of the jobs at risk are full-time posts, including head office roles, with 2,000 part-time. |
Mothercare has been looking for a buyer for the UK stores, but with no success so far. | Mothercare has been looking for a buyer for the UK stores, but with no success so far. |
The company also operates in more than 40 overseas territories, which are not subject to administration. | The company also operates in more than 40 overseas territories, which are not subject to administration. |
Mothercare said that in the financial year to March 2019, its international business generated profits of £28.3m, whereas the UK retail operations lost £36.3m. | Mothercare said that in the financial year to March 2019, its international business generated profits of £28.3m, whereas the UK retail operations lost £36.3m. |
Online woes | Online woes |
The move comes as High Street retailers continue to face tough times amid a squeeze on consumers' income, the growth of online shopping and the rising costs of staff, rents and business rates. | The move comes as High Street retailers continue to face tough times amid a squeeze on consumers' income, the growth of online shopping and the rising costs of staff, rents and business rates. |
Retail analyst Steve Dresser told the BBC that like collapsed travel firm Thomas Cook, Mothercare had failed to adapt to the world of online retail. | Retail analyst Steve Dresser told the BBC that like collapsed travel firm Thomas Cook, Mothercare had failed to adapt to the world of online retail. |
"They got very used to fat margins and a way of trading that's store-based," he said. | "They got very used to fat margins and a way of trading that's store-based," he said. |
However, the firm had also lost its way on the High Street, with poor store environments that deterred customers. | However, the firm had also lost its way on the High Street, with poor store environments that deterred customers. |
Ultimately, he said, people did not think of Mothercare first when it came to buying baby goods: "I think you would be hard-pressed to know what the brand stands for." | Ultimately, he said, people did not think of Mothercare first when it came to buying baby goods: "I think you would be hard-pressed to know what the brand stands for." |
Are you a Mothercare customer or employee? Share your experiences by emailing haveyoursay@bbc.co.uk. | |
Please include a contact number if you are willing to speak to a BBC journalist. You can also contact us in the following ways: | |
Or use the form below: |