Blog

Mothercare puts British stores into administration

Fast news

Mothercare director of UK children and infant supplies retailer puts more than 2,000 jobs at risk. 79 UK stores of 58-year-old global brands have been shedding cash for years.

Mothercare's 79 stores in the UK lost $ 46.9 million last year.

Mothercare's 79 stores in the UK lost $ 46.9 million last year.
(Tolga Accen / AP)

Mothercare, a UK-based retailer for children's and infant goods, said Monday it puts more than 2,000 jobs at risk in the UK business that is causing losses in the UK.

79 UK stores of 58-year-old global brands have been shedding cash for years.

In March, Mothercare reported revenues of $ 366 million (28.28 million pounds, € 32.8 million) in more than 1,000 stores worldwide.

The UK's sales lost £ 36.3 million in the same fiscal year.

The company said it has been having fruitless conversations with its partners on domestic projects that are struggling since May 2018. It has already closed 55 stores last year.

Mothercare said, "(UK stores) has now become unable to return to a sustainable level of structural profitability and profits for the group because the group currently owns or is attractive enough to third party partners." statement.

"In addition, the company cannot continue to meet Mothercare UK's ongoing cash needs."

Mothercare's stock fell 29{7be40b84a6a43fc4fae13304fce9a2695859798abfc41afd127b9f8b21c5f9c5} in the morning trading at 8.01 pence.

The company stressed that its operations in the UK would "be free to trade in the normal business process" and did not comment on future jobs.

Financial analysts blamed Mothercare's problems with the slow development of online operations and failed marketing campaigns.

Competition with large UK retailers and online conglomerates such as Amazon forced several historic British brands to close their stores.

Uncertainty over the Brexit crisis has hampered restructuring efforts due to investors' limited appetite for betting on the UK.

Source: AFP

Source Link : https://www.trtworld.com/business/mothercare-puts-british-stores-into-administration-31096?utm_source=other&utm_medium=rss

staff

Umang.pk has a professional team of Staff Which Work on Research & content before publishing it. We are trying our best to provide you fast & best informing without any fail.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button