Mothercare Ireland exits examinership process

29 Oct

Over 250 jobs across the country have been secured after the High Court approved Mothercare Ireland's exit from the examinership process.

The company will continue to trade at 15 stores nationwide but 3 stores - in Blackrock and Jervis Street in Dublin and Cruises Street in Limerick - will close early next year.

Mothercare said it is currently in consultation with all staff impacted at the three shops and staff will be deployed were possible.

As part of the examinership process, the group said it has secured a rent reduction of 30% across its store portfolio.

The company said that further stores that were potentially under threat will now remain open following the agreement on reduced rents secured by the Examiner.

The company's request for examinership was due to unsustainable rents as many of its stores had to contend with rents that significantly exceeded the current market rates.

Mothercare Ireland was set up in 1992 by David Ward who had previously run the BHS, Habitat and Mothercare businesses in Ireland for the Storehouse Group.

Mr Ward said that staff at Mothercare Ireland have maintained standards and service throughout a challenging period.

"Mothercare Ireland employees have had a difficult few months and so today's encouraging plan is a great relief. There is huge regret that a small number of stores were not viable and will close", he said.

But he added that the remaining stores on renegotiated leases offer the company a sustainable and secure future.

"We are more committed than ever to our loyal customers and employees. We have taken care of generations of babies in Ireland and will continue to do so for many more generations in years to come," he added.

Mothecare Ireland has stores in Cork, Dublin, Galway, Tralee, Newbridge, Portlaoise, Limerick, Drogheda, Dundalk, Sligo and Waterford.

Article by RTE