Parent & child products retailer Mothercare’s Australian business has entered administration, it has been announced today.
Following what the group called “the deterioration of trading conditions in Australia”, the retailer was in talks with Myer Family Holdings to sell the business, though these proved inconclusive.
In November last year, the retailer made a provision of £10.6 million to cover the remaining value of its investment and has also ensured “tightly controlled” receivables from Mothercare Australia.
Earlier this month, Mothercare announced a 7.4 per cent decline in group sales, dragged down by a poor UK performance as total sales dropped 12.9 per cent in the 13 weeks to January 12th 2013.
A statement from the group noted: “Mothercare Australia accounts for circa 7 per cent of International retail sales.
“The expected profit impact is minimal and does not change our overall view of International profitability going forward.”