Administrators Consider Closing Mothercare

BRI Ferrier is seriously considering closing down Mothercare Australia, following reports that the company has laid off several of its head office personnel and impending retrenchment of more workers.

The administrators said that retrenchment is likely to happen as trading losses continue to go down. They added that several staff from the head office has already been retrenched and more have been advised that they will also be let go.

Antony Resnick and Brian Silvia said they are looking into the possibility of closing the unprofitable stores of Mothercare. Resnick and Silvia are voluntary administrators from BRI Ferrier.

Reports indicate that the sale of Mothercare Australia may be finalized by the end of February.

Mothercare Australia manages 44 stores in the country under the brands Mothercare, Early Learning Center and Kids Central. It also operates three stores in New Zealand. The company has some 400 employees.

Voluntary administrators were called in when the sale of Mothercare to the Myer family company collapsed. According to BRI Ferrier, the balance sheet of Mothercare Australia showed $6.2 million of net assets.

The company, however, has incurred a $5.5 million net loss.

BRI Ferrier said it hopes to sell the business either in whole or in parts.