// Mothercare calls in KPMG to assess options for its UK business
// The move could potentially place 2500 jobs at risk
// Last year, Mothercare carried out a CVA with KPMG to close 55 stores
Mothercare has drafted in restructuring experts from KPMG to assess options for its UK business, a move that could potentially place 2500 jobs at risk.
The maternity and babywear retailer is working with KPMG on contingency plans that could include a potential second CVA, as well as a sale of the business, according to The Times.
Mothercare has been trying to sell its business in the UK but has been unsuccessful in this venture.
READ MORE:
- Mothercare in talks to offload UK stores as sales drop
- Mothercare losses widen to £87.3m
- Mothercare quarterly like-for-likes dip 8.8%
The latest news comes after Mothercare carried out a CVA with KPMG to close 55 stores.
Mothercare recorded an overall loss before tax of £87.3 million for the 53 weeks to March 30, as fourth quarter like-for-like sales fell by 8.8 per cent.
However, its international operations on its own made a profit of £28.3 million.
Meanwhile, in the the 15 weeks to July 13 this year, total group sales at Mothercare fell by 9.2 per cent.
Chief executive Mark Newton-Jones reportedly wants to convert the UK operation into a franchise that emulates its international business model.
“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,” Mothercare said.
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