A phased closure of all 79 of Mothercare’s 海角视频 stores is set to start, with the loss of 2,800 jobs, its administrators have announced.
Administrators PwC, appointed on Tuesday night, said the administration includes all the 海角视频 stores and online business, but will not include its overseas business, which has more than 1,000 stores in around 40 countries.
The move comes after the mother and baby retailer revealed it was holding 11th-hour talks with potential partners as it battled to keep its brand in the 海角视频, having raised £3.2m from shareholders.
In the 海角视频, the firm has already closed 55 stores over the past year amid desperate efforts bid to keep the business afloat.
Zelf Hussain at administrator PwC said: “It’s with real regret that we have to implement a phased closure of all 海角视频 stores. Our focus will be to help employees and keep the stores trading for as long as possible.
“This is a sad moment for a well-known high street name.”
The retailer filed a notice to appoint administrators for the 海角视频 division on Monday.
However, it is still holding discussions “to ensure that the group has an ongoing retail presence in the 海角视频”, the company said.
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The group is understood to be looking at options which could include finding a partner to keep the Mothercare brand alive online, or a supermarket that has space to sell Mothercare-branded products.
Mothercare said it had raised £3.2m from a group of existing investors, including its biggest shareholder, sheep farmer and investment banker Richard Griffiths.
Chairman Clive Whiley yesterday said British high streets were facing “a near existential problem” with high rents and customers deciding to shop online.
“Mothercare 海角视频 is far from immune to these headwinds,” he said, adding it had been burning through cash.
“It is with deep regret and sadness that we have been unable to avoid the administration,” Mr Whiley added.
Earlier on Tuesday it was revealed that the company is set to move the pension schemes for its troubled 海角视频 business into its profitable parent group.
The company is understood to be finalising a deal to move the pension schemes of its 海角视频 employees from the troubled arm as part of a new funding plan to preserve benefits for its scheme members.
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Mothercare is in talks with pension trustees over a potential agreement to move the schemes into the global parent group, which has continued to trade profitably despite its 海角视频 woes.
A deal would stop the funds being placed into the 海角视频 Pension Protection Fund (PPF).
A spokesman for The Pensions Regulator said: “We are holding detailed discussions with the scheme trustees, advisers and the PPF to understand the implications of recent developments and to ensure the interests of members are protected to the fullest extent possible. We will not comment further.”