Zelf Hussain, David Robert Baxendale and Mark James Tobias Banfield of PwC have been appointed as joint administrators of Mothercare UK Limited, and Mothercare Business Services Limited. The appointment was made on 5 November 2019.
Mothercare Plc (and subsidiaries) is a global retailer for parents and young children and operates an international franchise business alongside Mothercare UK. The business operates 79 retail stores in the UK and 1,010 overseas franchise stores across 40 territories. The entities in administration employ 2,485 retail staff and 384 head office and distribution staff.
Whilst the international franchise operations are profitable, the UK segment has been loss making for a number of years. The directors have in recent times explored many options to restructure Mothercare UK Limited including a CVA in May 2018. Despite the restructuring that followed the CVA, trading has remained challenging, with difficult market conditions, reduced consumer spending and a fundamental change in high street retail.
Mothercare UK Limited has been marketed for sale but, despite numerous expressions of interest in the brand, no offers were received that would preserve the business as a going concern. As a result the Directors have taken the very difficult position to put the UK business into administration.
The joint administrators will continue to trade the UK business and have appointed Gordon Brothers as agents to provide an experienced retail team to work in partnership with the head office, store and divisional teams. The UK store portfolio will be wound down over the coming weeks and months.
In the meantime, the international franchise partners will continue to trade the Mothercare overseas business as normal.
Zelf Hussain, joint administrator and PwC partner, said:
“This is a sad moment for a well-known high street name. No-one is immune from the challenging conditions faced by the UK retail sector. Like many other retailers, Mothercare has been hit hard by increasing cost pressures and changes in consumer spending.
“It’s with real regret that we have to implement a phased closure of all UK stores. Our focus will be to help employees and keep the stores trading for as long as possible.”
Notes to editors
Zelf Hussain, David Robert Baxendale and Mark James Tobias Banfield, were appointed as Joint Administrators of Mothercare UK Limited and Mothercare Business Services Limited on 5 November 2019 to manage their affairs, business and property as their agents and without personal liability. Zelf Hussain, David Robert Baxendale and Mark James Tobias Banfield are licensed in the United Kingdom to act as insolvency practitioners by the Institute of Chartered Accountants in England and Wales
The joint administrators are bound by the Insolvency Code of Ethics which can be found at: https://www.gov.uk/government/publications/insolvency-practitioner-code-of-ethics.
The joint administrators may act as controllers of personal data as defined by the UK data protection law depending upon the specific processing activities undertaken. PricewaterhouseCoopers LLP may act as a processor on the instructions of the joint administrators. Personal data will be kept secure and processed only for matters relating to the joint administrators’ appointment. Further details are available in the privacy statement on the PwC.co.uk website or by contacting the joint administrators.
David Jetuah, PwC
Tel: +44 (0)7841 468678
Diana Yeboah, PwC
Tel: +44 (0)7483422914
Felix Ampofo, PwC
Tel: +44 (0)7841 468245
Ellie Raven, PwC
Tel: +44 (0)7525 925830
Richard Pain, PwC
+44 (0)7841 071907
All other enquiries:
Employees - 02890 346 531
Trade/customer - 02890 415 520
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