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Liverpool Echo
Liverpool Echo
World
Neil Shaw & Sophie McCoid

Mothercare set to close UK shops with thousands of jobs at risk

Mothercare shops could be closed across the UK after the company began drawing up plans to go into administration.

The move would see branches close and thousands of people lose their jobs, but the parent company would not shut down.

Mothercare has branches at Aintree, Chester and Warrington, with others across the country.

The company is expected to continue operating outside the UK, according to Sky News.

Mothercare's chain of UK High Street and retail park branches is just a small part of its business - while its operations outside the UK are bigger and more succesful.

(Mothercare)

Outside the UK it operates 1,000 stores in about 50 countries.

The company has been trying to sell off the UK arm for several months and restructuring has recently seen a number of branches shut down and it currently operates just 79, down from 137, with around 2,500 employees.

The struggling retailer fell to a £36.3million loss last year under a controversial company voluntary arrangement (CVA).

The news comes just months after Mothercare sold off its Early Learning Centre arm to The Entertainer for £13.5million.

Mothercare's UK business has been unprofitable for more than a decade and in January, it warned of a "challenging period" after even digital sales at the retailer dropped 16.3%.

It blamed lower sales led by its store closure programme as well as a smaller 'toy offer' with less discounting.

The company also said it is aiming to be debt free by the end of this year.

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