Mothercare ‘finalising plans’ to put UK business into administration
Mothercare is said to be finalising a restructuring plan that could involve putting its British operations into administration this week, in what would be the latest blow to the UK’s struggling retail sector.
The company, which now leans heavily on its franchising business abroad, has readied administrators to take over the unit in the coming days, according to Sky News.
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Such a move would plunge thousands of people’s jobs into doubt. However, it would not directly affect its publicly quoted parent company, which is deep in talks with lenders about a refinancing deal to secure its future trading.
The retailer’s UK arm only makes up a small part of its overall sales.
Sources told the broadcaster that an insolvency process could spark a renewed effort to find a buyer, and potentially another restructuring. That could even include another wave of shop closures.
However, insiders are said to have maintained that no formal decision has yet been made, and that the move is subject to ongoing talks. Those include consulting the trustees of Mothercare’s pension scheme.
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If no buyer is found in any administration process, it would put 2,500 people’s jobs at doubt. The UK workforce is made up of 500 full-time employees and 2,000 part-time staff, working across 79 standalone outlets.
Mothercare was not immediately available for comment.