// Mothercare wants to move the pension schemes for UK business into its parent group
// The deal would ultimately stop the funds being placed into the UK Pension Protection Fund
Mothercare is reportedly in talks with pension trustees over a potential agreement to move the pension schemes into its global parent group which has continued to trade profitably.
The deal would ultimately stop the funds being placed into the UK Pension Protection Fund (PPF).
On Monday, the embattled retailer announced that it will file notices of intent to appoint administrators with the court, less than 18 months after it launched a CVA.
The notices pertain to Mothercare’s businesses services subsidiary and its UK retail business, which has 79 stores.
It also put the jobs of 2500 employees at risk.
It also said it has reviewed its UK business and found that it is “not capable of returning to a level of structural profitability”.
If the pension schemes enter the industry-funded support system, it could result in cuts to future retirement benefits.
The UK’s Pensions Regulator has two pension schemes in the UK, which between them have nearly 6000 members.
When they were last valued in 2017, the schemes were insufficient of £139 million.
Mothercare has closed 55 stores in the UK in the past year as it finds ways to survive on the high street.