Thousands of jobs at risk as Mothercare falls into administration

Thousands of jobs at risk as Mothercare falls into administration
Thousands of jobs at risk as Mothercare falls into administration

Up to 2,500 jobs are at risk, as Mothercare announced plans to fall into administration within the next 48 hours.

The baby goods retailer said its 79 stores in the UK were "not capable of returning to a level of structural profitability and returns that are sustainable for the group".

This is the latest blow for Mothercare, whose creditors approved a CVA that saw the retialer shut down 55 stores in June last year.

Although Mothercare's stores and website are currently trading as usual, administrators will decide whether or not to close down shops while they look for a buyer or cease trading altogether.

The move does not include Mothercare’s overseas business, which has more than 1,000 stores in more than 40 countries.

Only 500 of the jobs at risk are full-time posts, including head office roles, with 2,000 part-time.

The retailer said that in the financial year to March 2019, its international business generated profits of £28.3m, whereas the UK retail operations lost £36.3m.

It joins other High Street retailers struggling amid a squeeze on consumers' income, the rising costs of running stores, and the rise of internet shopping.

This year alone has seen Debenhams close 22 of its 50 branches, Marks and Spencer close 35 more stores, and the collapse of chains such as Jamie's Italian.