THE HIGH COURT has appointed an examiner to Mothercare Ireland.
Declan McDonald of Price Waterhouse Coopers has been appointed to the act as interim examiner to the business. He’ll be assisting with the restructuring of the company to ensure its financial viability into the future.
“Mothercare Ireland believes that a restructuring through examinership is necessary to secure the long-term future of the company and to secure the jobs of as many of its 275 employees as possible,” a statement said.
“The company will continue to trade as normal during the examinership process and wants to assure all customers that it will continue to honour all gift cards and family card points.”
All employees have been paid to date and will be paid in full throughout the examinership period, the company said.
Suppliers will also be paid as normal.
18 stores
Mothercare Ireland, which is a franchise of Mothercare UK, has traded in Ireland for 23 years and currently has 18 stores.
The company said the examinership process was essential for ensuring its long-term future, and that many outlets had rents in excess of the current market rates.
“Whilst there may be a perception out there that the economy is recovering retailing remains an extremely tough sector in every way”, owner David Ward said.
“We have made significant losses over the last four years and have done everything we can to reduce our cost base and increase sales.
“The unreasonable level of rents remains the largest threat to our business and we have to do something about it.”
He said entering examinership was the “responsible decision”.
“Many companies have successfully come through the examinership process in recent years and we are confident that we too will emerge as a more robust company which is better equipped to deal with the changing retail environment.”
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