in

All Mothercare UK stores to close – BBC News, BBC News

All Mothercare UK stores to close – BBC News, BBC News


        

                                 Mothercare workerImage copyright                 Newscast                                                  

Troubled baby goods retailer Mothercare has called in administrators, putting 2, 500 UK jobs at risk.

There will be a phased closure of all of its 79 UK stores, administrators from PwC said.

The UK firm “has been loss making for a number of years”, but international franchises are profitable, PwC said.

On Monday the baby goods firm said it was “not capable” of being sufficiently profitable and that it had failed to find a buyer.

Joint administrator Zelf Hussain said: “This is a sad moment for a well-known High Street name,” adding that Mothercare “has been hit hard by increasing cost pressures and changes in consumer spending.”

“It’s with real regret that we have to implement a phased closure of all UK stores. Our focus will be to help employees and keep the stores trading for as long as possible , “Mr Hussain sai d.

Clive Whiley, chairman of Mothercare said there was “deep regret and sadness that we have been unable to avoid the administration of Mothercare” and that the board “fully understand the significant impact on those UK colleagues and business partners who are affected.”

“However, the board concluded that the administration processes serve the wider interests of ensuring a sustainable future for the company, including the wider group’s global colleagues, its pension fund, lenders and other stakeholders. “

Mothercare said it was in continuing talks over possible UK concession stores and about using the brand to sell goods online.

It said it wouldmove its pensions scheme across to its international business.

The administration will be “disappointing for all the employees but it’s not unexpected,” said Diane Wehrle, marketing and insights director at Springboard.

Since the firm negotiated a rescue deal with lenders last year, “they haven’t changed anything fundamentally,” she said.

“The levels of investment needed to future-proof the business would have been so significant and they couldn’t make that leap,” she added.

Ultimately, supermarkets and department stores ate into their market, plus cheaper online competitors, she said.

            

Brave Browser


Read More
Payeer

What do you think?

Leave a Reply

Your email address will not be published. Required fields are marked *

GIPHY App Key not set. Please check settings

Liverpool Carabao Cup tie with Aston Villa unchanged despite Fifa Club World Cup clash – BBC News, BBC News

Liverpool Carabao Cup tie with Aston Villa unchanged despite Fifa Club World Cup clash – BBC News, BBC News

Dark Souls Modding Could Bring Out a Whole New World, Crypto Coins News

Dark Souls Modding Could Bring Out a Whole New World, Crypto Coins News