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."
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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
-
What will the unravelling of US-China trade mean for the economy?What will a US-China decoupling mean for the global economy?
-
Scottish Mortgage: why we’re turning to private companies and China for exceptional returnsWhen it comes to delivering growth, Scottish Mortgage will stop at no end in its hunt for exceptional long-term returns - this includes China, unicorn companies and sectors such as space exploration
