Key moments leading to uncertain future for Mothercare UK
Ailing retailer Mothercare has announced plans to put its UK business into administration.
The company said it will file a notice to appoint administrators on Monday, casting a shadow over the future of its 79 UK shops and 2,500 employees.
Here, the PA news agency looks at some of the key moments in the decline of the well-known retailer:
Mothercare is founded by entrepreneurs Selim Zilkha and Sir James Goldsmith.
The company becomes part of the Storehouse group after it merges with homeware business Habitat and British Home Stores.
The company revertss to the Mothercare brand after the BHS and Habitat businesses are each sold off separately.
– June 2007
The retailer purchases the Early Learning Centre chain of children’s stores for £85 million.
By now, Mothercare has grown to more than 350 outlets in the UK.
The retailer has seen a steady decline in sales following the financial crisis, resulting in a number of profit warnings and a steady stream of store closures.
By November, the company has 152 UK stores and warns over the “softening UK market” as half-year losses widen on the back of sliding high street store sales.
– May 2018
Mothercare secures a Company Voluntary Arrangement (CVA) restructuring deal which it says will lead to the closure of 50 stores and affect 800 jobs.
The retailer says it has also agreed rent reductions on another 21 stores as part of the move.
– July 2018
The retailer announces a £32.5 million fundraiser at 19p per share (more than double its current value) to gather proceeds to pay off its significant debts.
The company also says it will close more stores than previously indicated, forecasting a rise to 60 closures, although this eventually results in 55 sites shutting their doors.
– December 2018
The retailer sells and leases back its UK head offices, bringing in £14.5 million, as sales continue to fall in its UK high street stores.
– March 2019
Mothercare announces plans to sell the Early Learning Centre toy business to rival retailer The Entertainer for £13.5 million.
The group says the sale is the “next step towards being free of bank debt”.
– July 2019
The children’s goods business issues a profit warning after it sees UK profit margins improve slower than forecast due to the difficult retail backdrop, despite the major restructuring and cost-saving efforts.
UK sales are decimated by the raft of closures, driving total UK sales down by 23.2% for the 15 weeks to July.
– November 2019
The parent business says it will file a notice to appoint administrators for the UK business as it can no longer “satisfy the cash needs” to keep it afloat.