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.”