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Mothercare files notice of intent to appoint administrators to UK business
[LONDON] Struggling baby products retailer Mothercare has filed a notice of intent to appoint administrators to its loss-making British business, putting hundreds of jobs at risk and dealing another blow to the country's troubled retail sector.
Mothercare's sales have been hammered by intense competition from supermarket groups and online retailers in its main British market as well as by rising costs. It also has a major overseas operation.
The group said notices to appoint administrators to its trading subsidiary, Mothercare UK Limited and to Mothercare Business Services, which provides services to Mothercare UK, will be filed with the court on Monday.
Notices of intent to appoint administrators give companies protection from creditors for ten days before potentially tipping into them into administration.
Mothercare said the company and its other subsidiaries were not covered by these notices and it will be free to continue to trade in the normal course of business.