Mothercare, the baby product retailer is set to appoint administrators to its UK business, with over 2, 000 job losses. The company said it had filed a notice of intent to appoint administrators to Mothercare UK and Mothercare Business Services. Mothercare shares fell 23 per cent to 8,7p yesterday morning well below the 19p level at which the company raised fresh funds from shareholders last year.
The company said “ it was unable to continue to satisfy the ongoing cash needs of Mothercare UK”. Their latest financial results to March 2019, showed that the UK business lost £36m against a profit of £28m in the international operations, despite taking a substantial restructuring last year that involved the company closing 60 stores in the UK. Since then, it sold and leased back its Watford headquarters and sold Early Learning Centre to rival British toy retailer The Entertainer to raise cash.
The company still has a high market share in baby car seats and pushchairs.