RE: Mothercare in Administration4 Nov 2019 08:11
Sky News is reporting that Mothercare is finalising a radical restructuring plan under which its British operations will be placed into administration this week. It said the company, which is now dominated by its franchising business outside the UK, has put administrators on standby to take over its domestic division within days.
Richard Lim, chief executive of Retail Economics, said: “This is perhaps one of the most highly anticipated collapses on the high street. The retailer was already on life support having conducted a CVA [Company Voluntary Arrangement] last year.
"The cost-cutting operation and disposal of assets have not gone far enough to revive plummeting profits. Years of under investment in the online business and its inability to differentiate itself as a specialist for young families and expectant parents as 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."