Mothercare drafts in KMPG advisers

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Mothercare drafts in KMPG advisers
// 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.


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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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