Mothercare Australia goes into administration

By GARETH MACKIE
Published on 30/01/2013 08:28

Baby accessories retailer Mothercare today said its Australian arm has gone into administration after talks over the sale of the business proved fruitless.

The group said it expected a “minimal” hit to profits as a result, as it only has an indirect minority stake in the Australian business, which accounts for about 7 per cent of its international retail sales.

Espirito Santo analyst Sanjay Vidyarthi said: “The plan had been to sell Mothercare’s minority stake to the Myer family, but talks collapsed in the past 12 hours.”

In November, Mothercare took a £10.6 million hit after writing down the remaining value of its investment in Australia.