Business as usual for Mothercare Ireland

Business as usual for Mothercare Ireland

Business as usual for Mothercare Ireland

Business as usual for Mothercare Ireland. As UK retail chain, Mothercare announces their plans to place their retail business into administration. Mothercare Ireland will not be affected.

The British children’s retailer, operates 79 stores across the UK. In a statement released yesterday (05.11.2019) the company said they will file a notice of intent to appoint administrators for the UK business.

Mothercare Ireland is a separate business 

Mothercare Ireland, which is a separately owned and family run business, is not affected by the move in the UK.

Mothercare Ireland has 14 stores around Ireland. . It is one of the original partners of Mothercare Global and is currently the fifth largest partner in the world.

This business was started back in 1992 by David Ward. Today the stores are operated and run by his two sons Jonathan and Ben and daughter Laura.

Mothercare in the UK made a financial loss of £36.9m loss in their financial year to March. The retailer is experiencing similar woes of other high street retailers in the UK who are competing with on-line stores.

The UK arm of Mothercare employs 500 full-time staff and has 2,000 part-time employees. Their current condition looks like they will follow in the footsteps of other big fashion brands in the UK who have already been forced to close.

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

In a statement released by them they confirmed their business is 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 in UK looking for new buyer

They concluded that the listed group as a whole remains profitable despite the problems facing its UK division.

Shares in the parent company have already seen a huge reduction in their value on the London Stock Exchange.

Commenting on the UK announcement, Managing Director of Mothercare Ireland, Jonathan Ward confirmed that Mothercare Ireland is a completely separate company.

Their 14 Irish stores are not affected by the administration plans and will continue to trade as normal.

 

Business as usual for Mothercare Ireland

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