Mothercare’s retail business in the Republic, with stores in Galway and Sligo, is being placed into liquidation with the family that owns the franchise citing the “unprecedented” impact of Covid-19 on retail sales.
This means its 14 stores in Galway, Sligo, Dublin, Cork, Drogheda, Dundalk, , Limerick, Newbridge and Portlaoise, and Tralee will not reopen, and that 197 staff will be made redundant.
Staff were informed of the decision yesterday, with Tony McBride of FLC Frank Lynch & Co lined up as liquidator. A meeting of creditors will be held on June 22nd.
The Mothercare business, which sold a range of products for babies and young children, has been operated in Ireland since 1992 by the Ward family, under franchise from the British business of the same name.
It is understood that Mothercare expected its sales to decline by 40 per cent this year, leading to losses of about €3 million. The company had been selling products online following the introduction of lockdown restrictions but this stopped earlier this week, with the final orders fulfilled yesterday.