Mothercare Ireland examiner confirmed by court

A High Court judge yesterday confirmed the appointment of an examiner to Mothercare Ireland, which employs 276 people in 18 stores across the State.

Mr Justice Brian McGovern confirmed the appointment of Declan McDonald of PriceWaterhouseCoopers (PwC) after hearing the company has a reasonable prospect of survival.

The court was also told that attempts will have to be made to negotiate on shop leases as part of a restructuring plan.

Last week Mr Justice Brian McGovern granted an application by Rossa Fanning, counsel for Mothercare Ireland, for court protection and the appointment of Mr McDonald of PwC as interim examiner.

Mothercare Ireland is a franchise of Mothercare UK and has traded here for 23 years.

The company is Ireland’s largest maternity, baby, nursery and children’s clothes retailer.

Last week, the judge said he was satisfied the company, and two related companies, Mothercare World and Effleby Trading ltd, were entitled to protection. The company is to trade as normal during the examinership process.

Staff and suppliers will be paid as normal and all gift cards and family card points will be honoured.

A significant source of the company’s difficulties, the court previously heard, is having to contend with rents that significantly exceed current market rents.

The company says the renegotiation and repudiation of rents will be a significant aspect of the examinership process.

In court, yesterday, Mr Fanning said the UK company is economically totally separate to the Irish company and is a supplier of Mothercare.

Counsel told Mr Justice McGovern the UK parent company want to be paid €2m for goods supplied. He said that figure related to the supply of normal stock.

Mr Fanning added that Mothercare Ireland grew very rapidly in the boom. It had four stores in 1993 and in 2011 that number had increased to 24 stores.

While the business had been affected by the downturn, it is still a €33m a year trading business with 276 employees, he said.