AUSTRALIA: Mothercare Australia falls into administration
Mothercare Australia has fallen into administration after a deal with private investment firm Myer Family Company to buy the business fell through.
Myer Family Companies in October agreed to provide Mothercare Australia with A$500,000 (US$520,000) of short term working capital. However, there were a number of conditions to the transaction. Myer Family Companies terminated the agreement yesterday (29 January), saying some conditions were not fulfilled or waived.
Mothercare UK, which holds a minority stake in the business, said that in November last year it made a provision of GBP10.6m covering the value of its investment and other receivables from Mothercare Australia. Since then, receivables from Mothercare Australia have been tightly controlled on short payment terms.
It said that Mothercare Australia accounts for approximately 7% of international retail sales, and the expected impact on profit is minimal.
Brian Silvia and Antony Resnick of BRI Ferrier have been appointed as joint administrators.
More than 200 companies have now signed the Accord on Fire and Building Safety in Bangladesh following the collapse of the Rana Plaza factory building in Dhaka, which killed more than 1,100 people in ...
Unveiling a new five-year plan to improve worker safety at the factories in Bangladesh that produce their clothing, North American brands and retailers were keen to stress the similarities between the...
Mothercare has said it expects trading conditions to remain challenging in the UK and Europe after blaming an "increasingly promotional" market for a 3.4% sales decline in the first quarter....
Mother, baby and children's goods retailer Mothercare has narrowed its first-quarter loss at the end of the first year into its three-year transformation plan, despite being hampered by ongoing challe...
- Myanmar - right time, right place, new challenges
- 3D printing gears up for fashion industry change
- Apparel working conditions linked to profit
- H&M adds transparency to yarn and fabric mills
- Morocco plans to grow fast fashion exports
- Cambodia growth to slow on competition and cost
- China cotton imports to rise as Xinjiang cuts crop
- Adidas launches "lightest ever" football boot
- Crystal first China licensee of RevoLaze tech
- Thailand project to vertically integrate clothing