Mothercare exits examinership
Published 29/10/2015 | 02:30
The High Court has approved a survival scheme for Mothercare Ireland.
More than 250 jobs have been saved and the company will continue to trade at 15 stores nationwide following a €750,000 investment from the company's main shareholder, David Ward.
Mr Justice Brian McGovern refused an application by the Revenue Commissioners for an adjournment of the matter to allow them examine the investment scheme.
There were concerns the majority of investment would be eaten up by the examinership and examiner costs with less money available to creditors. Mothercare UK, which is the main supplier to the Irish stores, supported the scheme, the court heard.
The company, and two related companies, Mothercare World and Effleby Trading Ltd, went into examinership last July.
Under the investment scheme, the company will continue to trade at 15 stores nationwide but three - Blackrock and Jervis Street in Dublin and Cruises Street in Limerick - may close early next year.
Mothercare says consultations are taking place with staff at these shops who will be deployed elsewhere if possible.
As part of the survival scheme, the company secured a rent reduction of 30pc across its store portfolio.
Other stores that were potentially under threat will remain open following agreements on rent reductions.
Mothercare Ireland is a franchise of Mothercare UK and has traded here for 23 years. It is Ireland's largest maternity, baby, nursery and children's clothes retailer.