Retailer Mothercare 海角视频 has confirmed the appointment of PricewaterhouseCoopers as administrators, raising fears over the future of its 79 stores and 2,500 employees.
The administration is of the group's active trading subsidiary Mothercare 海角视频 and Mothercare Business Services, which provides certain services to Mothercare 海角视频.
The board said it had no alternative in the face of high levels of rent for its stores and the shift in consumer behaviour to online retailing, with it continuing to consume cash on what it described as an "unsustainable basis."
Its other subsidiaries, together with the wider group, have not entered administration, with its shares still trading on the London Stock Exchange.
Having taken insolvency and legal advice, the Mothercare board "decided that there was no reasonable alternative" but to appoint administrators in Zelf Hussain, Toby Banfield and David Baxendale from PwC, who will now focus on establishing liabilities of the two businesses with any assets being distributed to creditors.
Mothercare chairman Clive Whiley said: "Its with deep regret and sadness that we have been unable to avoid the administration of Mothercare 海角视频 and Mothercare Business Services, and we fully understand the significant impact on those 海角视频 colleagues and business partners who are affected.
"However, the board concluded that the administration processes serve the wider interests of ensuring a sustainable future for the company, including the wider group鈥檚 global colleagues, its pension fund, lenders and other stakeholders.
鈥淭he 海角视频 high street is facing a near existential problem with intensifying and compounding pressures across numerous fronts, most notably the high levels of rent and rates and the continuing shifts in consumer behaviour from high street to online.
Mothercare 海角视频 is far from immune to these headwinds despite the strength of the Mothercare brand, its exclusive and quality product range and recognised customer service.
"Despite the changes implemented over the last 18 months contributing to a significant reduction in net debt over the same period, Mothercare 海角视频 continues to consume cash on an unsustainable basis.
鈥淭he action announced today has been carefully thought through and without it, the existence of the wider group would be threatened.
"We know it is right for the wider group to ensure that Mothercare remains the leading global brand for parents and young children with a bright and solvent future within the international franchise business.鈥澛犅
