DUBLIN: An interim examiner has been appointed by the High Court to Mothercare Ireland, which employs 276 people in 18 shops across the State.
The aim of seeking court protection and examinership is to achieve a restructuring of the company, save as many jobs as possible and minimise shop closures, the company said. It cannot afford to support unprofitable stores, it added.
The firm said it will trade as normal during the examinership process, staff and suppliers will be paid as normal and all gift cards and family card points will be honoured.
Mothercare Ireland is a franchise of Mothercare UK and has traded here for 23 years. It is the country’s largest maternity, baby, nursery and children’s clothes retailer.
Mr Justice Brian McGovern today granted an application by Rossa Fanning BL, for Mothercare Ireland, for court protection and the appointment of Declan McDonald of PriceWaterhouseCooper as interim examiner.
The judge said he was satisfied the company, and two related companies, Mothercare World and Effleby Trading ltd, were entitled to protection and the appointment of an interim examiner and made directions for advertising the petition and returned it for hearing on July 30th
A significant source of the company’s difficulties is having to contend with rents that significantly exceed current market rents, the court was told. The company says the renegotiation and repudiation of rents will be a significant aspect of the examinership process.
