Mothercare set to call in administrators for UK chain
UK retailer founded by Jewish entrepreneurs Selim Zilkha and Sir James Goldsmith slumped to a £36.9 million loss
Mothercare has announced plans to place its 79-shop operation in the UK in administration, putting around 2,500 jobs at risk.
The company said it will file a notice of intent to appoint administrators for the UK business later on Monday.
The iconic chain founded by Jewish entrepreneurs Selim Zilkha and the late Sir James Goldsmith in 1961 is set to follow the likes of Bonmarche, Jack Wills and Karen Millen, which have gone bust in recent months.
Mothercare UK slumped to a £36.9 million loss in the financial year to March, as it has struggled amid a period of turmoil for high street retailers.
The move does not include Mothercare’s overseas operations which have shops in over 40 countries. The company said it reviewed its UK business is “not capable of returning to a level of structural profitability”.
Richard Lim, chief executive officer at Retail Economics, said: “Years of under-investment in the online business and its inability to differentiate itself as a specialist for young families and expectant parents has been the root of its seemingly inevitable downfall.
“As competition has become fiercer they have been beaten on price, convenience and the overall customer experience.
“Put simply, they have been left behind in today’s rapidly evolving market and the board has been unable to restructure the business fast enough to cope with a new retail paradigm that has emerged.”
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