Mothercare Ireland saved from closure

By Business & Finance
09 November 2015
baby RebeccaVC1

More than 250 jobs have been saved and 15 shops rescued from closure after retailer Mothercare Ireland confirmed a rescue package that will allow it to continue to trade.

Mothercare Ireland is the country’s largest maternity retailer, having traded for 23 years. The retailer’s future has been in doubt since the summer, having sought examinership in a bid to restructure the business and secure the long-term future of the company on the back of what it claimed were unsustainable rents.

With the restructuring in place, Mothercare Ireland will continue to trade from 15 stores nationwide, but will close three shops – two in Dublin and one in Limerick.

Jason Miller, head of Retail, Murphy Mulhall, who handled the landlord negotiations on behalf of Mothercare Ireland, said: “We are obviously hugely relieved to have secured the long-term future of this much-loved national retailer. The process has been challenging, but with transparency from the management team and a co-operative approach from landlords, we have shored up the property portfolio and achieved a 30% rent reduction across the board.”

He continued: “Now that the cost base is under control the Mothercare management can focus again on growth and will be looking at further investment and improvements across its operation.”

Mothercare traded as normal during the examinership process and continued to honour payments to staff and suppliers and all gift cards and family card points honoured.

Photo: RebeccaVC1