Mothercare's Problem UK Child on Brink of Collapse

Struggling baby products retailer Mothercare is set to appoint administrators to its loss-making British business, putting about 2,500 jobs at risk and dealing yet another blow to the country’s beleaguered retail sector, Reuters reported. Mothercare’s UK sales have been hammered by intense competition from supermarket groups and online retailers as well as by rising costs. The group also has a profitable international business, with over 1,000 stores in over 40 territories. Shares in the group were down 28% at 0859 GMT on Monday after it said it was clear the UK retail operations, which trade from 79 stores, were not capable of returning to a level of profitability that was sustainable for the group as it currently stands. “Furthermore, the company is unable to continue to satisfy the ongoing cash needs of Mothercare UK,” it said. Read more