Mothercare puts British stores into administration

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London, Nov 4 (AFP/APP): Britain’s children and baby products retailer Mothercare said Monday it was putting its loss-making UK business into administration at a risk of more than 2,000 jobs.

The 58-year-old global brand’s 79 British stores have been bleeding cash for years.

Mothercare in March reported making a profit of £28.3 million ($36.6 million, 32.8 million euros) from more than 1,000 stores it has worldwide.

Its UK operations lost £36.3 million in the same fiscal year.

The company said it has been holding fruitless talks with partners about its struggling domestic operations since May 2018. It already closed 55 stores last year.

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“It has become clear that (its UK 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,” Mothercare said in a statement.

 

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