Mothercare to go into administration, putting 79 stores and thousands of jobs at risk

Baby and maternity clothes retailer ‘not capable of returning to a level of structural profitability,’ bosses say

Mothercare has announced plans to put its UK retail business into administration, putting thousands of jobs and 79 stores at risk.

The baby and maternity clothes retailer said it will file a notice of intent to appoint administrators for the business later on Monday.

It comes after Mothercare UK slumped to a £36.9m loss in the financial year to March, as it has struggled amid a period of turmoil for high street retailers.

The retailer, which has about 500 full-time staff and 2,000 part-time employees, is set to follow the likes of Bonmarche, Jack Wills and Karen Millen, which have gone bust in recent months.

The global Mothercare group said it had undertaken a review of the UK business and found that it was “not capable of returning to a level of structural profitability”.

It said the business is therefore unable to satisfy the cash needs of the UK arm and is therefore filing the notice as part of the restructuring and refinancing process.

Mothercare added that the listed group remains profitable despite the problems facing its UK division.

Shares in the parent company dived by 29.2 per cent to 8p in early trading on Monday.

Additional reporting by Press Association.