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.
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