Mothercare has announced they are set to place 79 UK retail stores into administration affecting 2,500 jobs.
The children’s retailer is to appoint administrators for the UK business later on Monday.
In the financial year to March Mothercare UK posted a £36.9m loss due to the high street turmoil. The retailer joins a long list of well-known disappearing retail giants such as Karen Millen, Bonmarche and Jack Wills.
Mothercare said in a statement on Monday, “Since May 2018, we have undertaken a root and branch review of the group and Mothercare UK within it, including a number of discussions over the summer with potential partners regarding our UK Retail business.
“Through this process, 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.
“Furthermore, the company is unable to continue to satisfy the ongoing cash needs of Mothercare UK.
“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.
“Plans are well advanced and being finalised for execution imminently.”
In early morning trading shares fell by 29% to 8p.