Jobs could be at risk at Dundee’s Mothercare store after the company announced today it plans to place its UK retail business in adminstration.
The firm said today around 2,500 jobs are at risk across the UK.
The company, which sells products including pushchairs, clothing, toys, furniture and other baby items, has a store in Dundee’s Gallagher Retail Park.
The Tele understands that management at Dundee’s Mothercare were give no additional information about the plans to put the firm into administration.
The branch will continue to function as usual until given more information by corporate, it is understood.
Staff have been contacted but were unable to give a statement at the time of publication.
The children’s retailer, which has 79 UK stores, said it will file a notice of intent to appoint administrators for the UK business later on Monday.
>> Keep up to date with the latest news with Evening Telegraph newsletter
Mothercare UK slumped to a £36.9 million loss in the financial year to March, as it has struggled amid a period of turmoil for high street retailers.
The retailer, which has around 500 full-time staff and 2,000 part-time employees, is set to follow the likes of Bonmarche, Jack Wills and Karen Millen, which have gone bust in recent months.
The global Mothercare group said it has undertaken a review of the UK business and found that it is “not capable of returning to a level of structural profitability”.
It said the business is therefore unable to satisfy the cash needs of the UK arm and is therefore filing the notice as part of the restructuring and refinancing process.
Mothercare added that the listed group remains profitable despite the problems facing its UK division.
Shares in the parent company dived by 29.2% to 8p in early trading on Monday.