Mothercare Brings in Advisors to Look at Restructuring Options

Written by: Keith Tully

Published: 29th October 2019

Mothercare storeThe mother and baby products retailer Mothercare has brought in advisors from KPMG to look at potential restructuring options as it struggles to stay in business.

Mothercare has been posting significant losses for some time and bosses have been seeking to sell the operation, which incorporates 79 stores and employs roughly 2,500 people in the UK and elsewhere.

In March 2018, the company sold its Early Learning Centre business for £13.5 million but it soon found itself in serious financial strife later the same year.

After entering into a Company Voluntary Arrangement (CVA) in 2018, a total of 55 Mothercare stores were closed with around 800 jobs lost as a result.

More than £30 million was subsequently raised in order to keep the business operational but it’s become clear that the future remains uncertain for what has long been the country’s foremost mother and baby products retailer.

Recent years have been extremely testing for many different retailers, with CVAs becoming increasingly commonplace in the sector and some of the country’s best-known and longest-standing high street operators finding themselves in administration.

Mothercare posted losses of £87.3 million for the 53 weeks to the end of March 2019 but its international operations managed to deliver profits worth £28.3 million last year.

It’s believed that bosses at the company are looking to find ways of bringing performance at its UK stores closer to that of its overseas branches if new buyers for the entire business cannot be found.

“Our priority is to complete the transformation of the business with a near-term focus on evolving and optimising the ownership, structure and model for our UK retail operations as an independent franchise,” a recent statement from the company explained.

According to reports from the Times newspaper, it could be that Mothercare will soon enter a CVA for the second time in recent years to reduce its liabilities.

However, it is understood that a sale of the business overall remains the preferred solution for those leading and advising the company.

Keith Tully

Keith Tully

Join Keith Tully on Linked In Follow Keith Tully on Twitter

Keith has been involved in Business Rescue since 1992, during which time he’s worked for both independent and national firms. His specialties include company restructuring matters and negotiating with HMRC on his clients behalf.

Meet our Team of Experts
Director Support - Business suffering from Cash-Flow Problems?
If your company is financially distressed, we also offer the below services:
Business debt recovery

  • Recover Unpaid Invoices of £5k+
  • Expert Credit Control Services
  • Stop Late Payers & Bad Debts
Visit Site
Time to pay experts

  • Get Breathing Space with HMRC
  • Support with Business Tax Arrears
  • 35 Years HMRC Negotiation
Visit Site
UK Business Finance

  • Rejected for a CBILS Loan?
  • Get Emergency Business Funding
  • Supporting 1000+ UK Companies
Visit Site
Who we help
  • Company Directors
  • Finance Directors
  • Sole Traders
  • Accountants
  • Small Businesses
  • Large Businesses
  • Partnerships
Contact our team
Jonathan Munnery
Gillian Sayburn
Julie Palmer
or Find your Nearest Office

Here at Real Business Rescue we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See PRIVACY POLICY

Business Rescue Advice for Directors
Free Guide for Limited Company Directors
Business Rescue Advice for Directors
  • How to manage company cash flow problems
  • Advice on dealing with HMRC
  • Understanding rescue and closure options
  • And much more...
Free Guide Download
Dealing with your Insolvent Clients
Business Rescue Guide for Accountants
Dealing with your Insolvent Clients
  • Helping you advise insolvent clients
  • Spotting signs of client distress
  • Exploring business rescue options
  • And much more...
Free Guide Download
Our numbers speak for themselves
Number of UK Offices
Directors Helped
Licensed Insolvency Practitioners

This site uses cookies to monitor site performance and provide a more responsive and personalised experience. You must agree to our use of certain cookies. For more information on how we use and manage cookies please read our PRIVACY POLICY