Another big name bites the dust - but when will it end?

It was a question of how long before another big name on the High Street called in the administrators with Mothercare’s management facing the inevitable collapse.With its beautifully illustrated catalogue and advertising literature it will be a big blow to the print, paper and photographic industries as well as logistics and its suppliers including Maclaren and Silvercross.

Then there are the staff who may be looking for a new job before Christmas, the signage and graphics people behind all those signs and the many firms involved in the IT and support systems. With 152 shops in Britain and 2,500 jobs plus many more in supporting roles this is a body blow for GB plc.

Writing in the Retail Gazette Elias Jashan said: “Mothercare has announced that it will file notices of intent to appoint administrators with the court today, less than 18 months after it launched a CVA. The notices pertain to Mothercare’s businesses services subsidiary and its UK retail business, which has 79 stores. Although Mothercare said the two affected subsidiaries will trade as per usual, the plans to put its UK retail businesses into administration places hundreds of jobs at risk. The maternity retailer stressed that all other aspects of the company – such as its profitable international division – are not covered by the notices of intent.”

Ian Carrotte of ICSM Credit said: “It comes after an unprecedented period of carnage in the High Street with Debenhams, Bonmarche, Thomas Cook, Karren Millen, Oddbins and Hardie Amies amongst a long list of firms who have hit the rocks. Not since the Credit Crunch of 2008 and the banking crisis has we have seen so many companies in trouble.

“We try to protect members with up to the minute credit intelligence. Every day I have calls from members to alert us of big names who are not paying their bills. The concern is that it appears to be getting worse and some members feel a recession is new possible. So credit control is king.”

In June last year Mothercare’s creditors approved a CVA that would see the company downsize to around 55 stores. Sales ;have been falling year on year as mums to be and families switch to online shopping for those big purchases like prams, buggies, cots and child care items. The group is still profitable abroad where it has many more stores but in the Uk the once mighty name has called in KPMG to seek a solution to the crisis.