Mamas & Papas is to close six shops and cut nearly 130 jobs, having narrowly dodged falling into full administration earlier this week.
The Huddersfield-based baby and maternity retailer collapsed into administration on Friday, but was immediately bought back by the other firms controlled by Bluegem Capital, the retailer’s private equity owner.
Reported by the Guardian, the arrangement allows a struggling company to off-load some of its debts in what is called a pre-pack administration. The business will continue to trade from 26 shops and keep safe more than 600 jobs.
Mamas & Papas is a major supplier to Mothercare, but it is understood that the retailer limited its debts to its supplier before announcing its plans to close down all of its 79 UK stores on Friday.
A company spokesperson for Mamas & Papas said that the appointment of administrators from Deloitte was not linked to Mothercare’s collapse.
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.”
Mamas & Papas will 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.