Mothercare Australia goes into administration

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.

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."

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

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

The electric-car bubble could get an awful lot bigger from here
Renewables

The electric-car bubble could get an awful lot bigger from here

The switch to electric cars is driving a huge investment bubble. But that’s not necessarily a bad thing, says John Stepek. Fortunes will be made and l…
24 Sep 2020
Can Rishi Sunak’s winter plan save the UK economy?
UK Economy

Can Rishi Sunak’s winter plan save the UK economy?

With his Winter Economic Plan, chancellor Rishi Sunak is hoping to support the economy through the dark months ahead as restrictions tighten again. Jo…
25 Sep 2020
The rising dollar is proving bad news for most other assets – will it last?
Investment strategy

The rising dollar is proving bad news for most other assets – will it last?

Precious metals, stocks and pretty much every other asset has taken a tumble as the US dollar strengthens. Dominic Frisby looks at how long this trend…
23 Sep 2020