Mamas & Papas closes six stores and cuts nearly 130 jobs
Mamas & Papas is closing six shops and cutting nearly 130 jobs just days after the collapse of its rival Mothercare.
The Huddersfield-based baby and maternity retailer collapsed into administration on Friday and was immediately bought back by other firms controlled by Bluegem Capital, its private equity owner.
The arrangement, which allows a failing company to ditch some of its debts, is called a pre-pack administration. The business will continue to trade from 26 shops, preserving more than 600 jobs.
A company spokesman said the appointment of administrators from Deloitte was not linked to Mothercare’s collapse earlier this week. Mamas & Papas, which was founded in 1981, is a major supplier to Mothercare but is understood to have limited its debts to the retailer. Mothercare began a closing down sale at all of its 79 UK stores on Friday.
Riccardo Cincotta, the executive chairman of Mamas & Papas, said the store closures and administration were “necessary in a challenging market” to ensure the firm can realise “its considerable future potential”.
He said Mamas & Papas would continue to review its store portfolio in the light of changing shopper behaviour, but remained “fully focused on maintaining our position as the UK’s most popular nursery brand”.
“Our digital performance is tracking ahead of expectation, our wholesale distribution in the UK and internationally continues to grow,” he said.
The administration comes five years after Mamas & Papas cut rents via an insolvency process known as a company voluntary arrangement, or CVA, after Bluegem took control of the business.
The latest difficulties at Mamas & Papas also come just a few months after Sports Direct bought Bluegem’s Jack Wills fashion chain out of administration.
The arrangement, which allows a failing company to ditch some of its debts, is called a pre-pack administration. The business will continue to trade from 26 shops, preserving more than 600 jobs.
A company spokesman said the appointment of administrators from Deloitte was not linked to Mothercare’s collapse earlier this week. Mamas & Papas, which was founded in 1981, is a major supplier to Mothercare but is understood to have limited its debts to the retailer. Mothercare began a closing down sale at all of its 79 UK stores on Friday.
Riccardo Cincotta, the executive chairman of Mamas & Papas, said the store closures and administration were “necessary in a challenging market” to ensure the firm can realise “its considerable future potential”.
He said Mamas & Papas would continue to review its store portfolio in the light of changing shopper behaviour, but remained “fully focused on maintaining our position as the UK’s most popular nursery brand”.
“Our digital performance is tracking ahead of expectation, our wholesale distribution in the UK and internationally continues to grow,” he said.
The administration comes five years after Mamas & Papas cut rents via an insolvency process known as a company voluntary arrangement, or CVA, after Bluegem took control of the business.
The latest difficulties at Mamas & Papas also come just a few months after Sports Direct bought Bluegem’s Jack Wills fashion chain out of administration.
