Mothercare has announced that it will appoint administrators, less than 18 months since it launched a CVA.
The children’s company, which operates 79 high street stores across the UK, said it will file a notice of intent today, placing 2,500 jobs at risk.It is believed that only 500 full time jobs are at risk.
Mothercare recorded a £6.9m loss in the financial year to March and also recorded an overall loss before tax of over £87m to March 30, as sales fell by 8.8%.
The global Mothercare group said the UK business is “not capable of returning to a level of structural profitability.”
Shares in the company decreased by over 29% to 8p in early trading on Monday (4 October)
Mothercare added that the listed group remains profitable despite the problems facing its UK division. It added that its UK stores will continue to operate for the time being.