Mothercare, the mother, baby and toddler products retailer, today confirmed Mothercare Australia has been placed into administration after takeover talks with Australian department store giant Myer fell through.
"Following the deterioration of trading conditions in Australia, as announced in November 2012, a decision was taken by our associate Mothercare Australia to sell its Mothercare and Early Learning Centre businesses to The Myer Family Company," it said in a company statement.
"These discussions have ended inconclusively and Mothercare Australia has been placed into administration."
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Mothercare Australia accounts for around 7% of international retail sales. The expected profit impact is minimal, it said, and does not change its overall view of International profitability going forward.
In November 2012, Mothercare made a provision of £10.6m, covering the remaining value of its investment in and other receivables due from Mothercare Australia, it explained.
Since then receivables from Mothercare Australia have been tightly controlled on short payment terms.
Otherwise there has been no significant change to the financial position of Mothercare, the group confirmed.
CJ
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