Home / Knowledge / News / Retail / Mothercare to close all stores in UK, to focus abroad

Mothercare to close all stores in UK, to focus abroad

06
Nov '19
Pic: Mothercare
Pic: Mothercare
British baby products retailer Mothercare will close all its UK stores, resulting in the loss of 2,500 jobs after its domestic operations collapsed due to pressures on the retail sector due to competition from online retailers and rising costs. As the firm failed to attract takeover offers, it appointed PwC to take charge of its administration process.

When a business goes into administration in the United Kingdom, a licensed insolvency practitioner (IP) is appointed to oversee the procedure. The appointed IP assumes control of the company from its directors and manages the business from that point onwards.

“The UK high street is facing a near existential problem with intensifying and compounding pressures across numerous fronts,” according to Mothercare chairman Clive Whiley, who said the most significant among those were high levels of rent and business rates and continuing shifts in consumer behaviour from high street to online.

Mothercare operates 79 retail stores in the United Kingdom, with the segment having been loss-making for a number of years, PwC said in a statement. The company, which operates 1,010 overseas franchise stores, had 400 UK stores a decade ago.

PwC said Mothercare’s UK store portfolio will be wound down over the coming weeks and months, adding that the entities in administration employ 2,485 retail staff and 384 head office and distribution staff, according to British media reports.

Mothercare will now focus abroad as it sets out to return the rest of the group to profitability by fiscal 2021.

The company said it had raised 3.2 million pounds through a 10 pence a share placing and that it was in talks for up to 50 million pounds more in funding from third parties including a standby underwritten equity issue and a new term loan facility. The existing bank debt facilities amounting to 24 million pounds would be paid down by the administration process.

Fibre2Fashion News Desk (DS)


Must ReadView All

Pic: UNCTAD

E-commerce | On 19th Sep 2021

Switzerland commits $4.4 mn for UNCTAD’s e-com, digital economy work

Switzerland recently announced a contribution of $4.4 million to the...

Pic: Shutterstock/humphery

Textiles | On 18th Sep 2021

China wants to join CPTPP; Japan to consult members to respond to bid

Chinese commerce minister Wang Wentao recently submitted an...

Pic: Shutterstock

Textiles | On 18th Sep 2021

Eurozone GDP recovers quicker than expected after lockdowns: EU report

The eurozone economy recovered more rapidly than considered earlier...

Interviews View All

Vandana Narang, National Institute of Fashion Technology

Vandana Narang
National Institute of Fashion Technology

Campus placements are low due to lockdowns

Textile Industry, Head honchos

Textile Industry
Head honchos

Delay in adopting water sustainability both financially & environmentally...

Textile Industry, Head honchos

Textile Industry
Head honchos

Good tidings expected for textile industry

Daniele Uboldi,

Daniele Uboldi

EptaInks is the screen-printing division of Eptanova, a company that...

Noemi Sanchez,

Noemi Sanchez

Established since 1846, Evlox is a specialised denim manufacturer with its ...

Shyam Gupta,

Shyam Gupta

Established by <b>Shyam Gupta</b> in 1978, Gargee Designer's (GD) offers...

Robert Brookins, Alexium International

Robert Brookins
Alexium International

Alexium International is a specialty chemical development company...

Dave Rousse, INDA

Dave Rousse
INDA

INDA, a global association of the nonwoven fabrics industry, has been...

Shaan Sethi, Jaanuu

Shaan Sethi
Jaanuu

Jaanuu, a vertically integrated e-commerce company, has reimagined the...

Aprajita Toor, Aprajita Toor

Aprajita Toor
Aprajita Toor

The creations by <b>Aprajita Toor</b> were born out of a deep desire to...

Gaurang Shah, Label Gaurang Shah

Gaurang Shah
Label Gaurang Shah

Hyderabad based designer <b>Gaurang Shah</b>, has been traversing the...

Sarah Denise Cordery, Sarah Denise Studio

Sarah Denise Cordery
Sarah Denise Studio

Manchester, England-based Sarah Denise Studio provides relevant fashion...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


September 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search