StockMarketWire.com - Infant merchandise retailer Mothercare said administrators were being appointed to its domestically-focused retail business, Mothercare UK, and related services provider Mothercare Business Services (MBS).

Mothercare added that the company and its other subsidiaries, including its profitable overseas business, were not covered by the move.

The company, Mothercare UK and MBS would be free to continue to trade in the normal course of business, it added.

Mothercare said it had become clear that its UK retail operations, which currently included 79 stores, were not capable of returning to a level of structural profitability and returns that were sustainable for the group.

In addition, Mothercare said it was unable to continue to satisfy the ongoing cash needs of Mothercare UK.

The company has a total of around 1,000 stores internationally.

In the financial year ended March 2019, the brand generated profits of £28.3m internationally whereas the UK retail operations lost £36.3m.

'These notices of intent to appoint administrators in respect of Mothercare UK and MBS are a necessary step in the restructuring and refinancing of the group,' the company said.

'Plans are well advanced and being finalised for execution imminently,' it added.

'A further announcement will be made in due course.' At 9:44am: [LON:MTC] Mothercare PLC share price was -3.28p at 8.02p

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