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Retail & Consumer

Mothercare's appointment of restructuring firm KPMG 'concerning' says insolvency expert

The baby retailer has appointed restructuring experts to "look at options"

Mothercare has appointed restructuring experts KPMG(Image: PA)

Questions are being raised over the future of Mothercare after the baby retailer appointed restructuring experts KPMG to “look at options” for the business.

The firm entered into a Company Voluntary Agreement - a controversial insolvency process that allows a business to shut stores and slash rents - in 2018.

As part of that agreement, Mothercare closed more than 50 stores around the º£½ÇÊÓÆµ leaving the retailer with 79 branches in Britain.

Mothercare also sold off its Early Learning Centre brand in 2018 and fell to a £36.3million loss in the last financial year.

It has now brought in KPMG to assess its options. But one Bristol-based insolvency expert believes the news is “concerning”.

Keith Mahoney, head of dispute resolution, insolvency and employment at law firm Meade King, said: “The difficulties of Mothercare are just the latest in a long line of high street retail failures.

Mothercare closed more than 50 stores last year(Image: Stoke Sentinel)

“What makes Mothercare of even more concern is the fact that it is in difficulty despite entering into a Company Voluntary Arrangement last year that led to the closure of 55 stores and the selling of its Early Learning Centre arm.

“It remains to be seen if the recent unprecedented sequence of retail failures is evidence of the cyclical adjustments of the past, a symptom of Brexit uncertainty or the inevitable result of a fundamental change in the way shoppers purchase goods, as bricks and mortar shops lose out to online competition.”