Mothercare has said that it is set to call in administrators, which will put 2,500 jobs at risk.
In the year to March 2019, the retailer posted profits of £28.3 million internationally, but its UK business made a loss of £36.3 million.
Mothercare released a statement today, saying: “Since May 2018, we have undertaken a root and branch review of the group and Mothercare UK within it, including a number of discussions over the summer with potential partners regarding our UK retail business.
“Through this process, it has become clear that the UK retail operations of the group, which today includes 79 stores, are not capable of returning to a level of structural profitability and returns that are sustainable for the group as it currently stands and/or attractive enough for a third party partner to operate on an arm’s length basis.
“Furthermore, the company is unable to continue to satisfy the ongoing cash needs of Mothercare UK.”
The retailer plans to continue trading as normal for the time being.
This follows the recent CVA, which allowed it to shut 55 stores.
