Baby and maternitywear retailer Mothercare has announced plans to put its UK retail business into administration.

The news follows Mothercare’s UK retail operations losing £36.3m in the financial year ending March 2019. The company did, however, generate profits of £28.3m internationally in the same period.

In a statement, Mothercare says: “Since May 2018, we have undertaken a root and branch review of the Group and Mothercare UK within it. This includes a number of discussions over the summer with potential partners regarding our UK Retail business.

“Through this process, it has become clear that the UK Retail operations of the Group, which today includes 79 stores, are not capable of returning to a level of structural profitability and returns that are sustainable for the Group as it currently stands and/or attractive enough for a third party partner to operate on an arm’s length basis. Furthermore, the Company is unable to continue to satisfy the ongoing cash needs of Mothercare UK.

“These notices of intent to appoint administrators in respect of Mothercare UK and MBS are a necessary step in the restructuring and refinancing of the Group. Plans are well advanced and being finalised for execution imminently.  A further announcement will be made in due course.”