Mothercare has announced that it intends to appoint administrators today, less than 18 months after it launched a Company Voluntary Agreement (CVA).

The notice submitted to court is for Mothercare’s businesses services subsidiary and its UK retail business, which has 79 stores. The two affected subsidiaries will trade as per usual, but the plan still places hundreds of jobs at risk.

The mother and baby retailer pointed out that other divisions - such as its profitable international arm - are not covered by the notices of intent.

Last week, Mothercare brought in KPMG to assess options for its UK business, following the move last June to file for a CVA, which saw 55 stores close.

The brand reported losses before tax of £87.3 million for the year to 30 March, on the back of fourth quarter like-for-like sales falling 8.8 per cent. The UK business lost £36.3 million, while the international division generated profits of £28.3 million.

Over the 15 weeks to 13 July this year, total group sales at Mothercare fell by 9.2 per cent.

A statement explained: “Since May 2018, we have undertaken a root and branch review of the group and Mothercare UK within it, including a number of discussions over the summer with potential partners regarding our UK Retail business.

“Through this process, it has become clear that the UK retail operations of the group, which today includes 79 stores, are not capable of returning to a level of structural profitability and returns that are sustainable for the group as it currently stands and/or attractive enough for a third party partner to operate on an arm’s length basis.”

Mothercare added that another announcement will be made in due course after the intents have been filed with the court.

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