Mothercare Australia has been placed into administration after trading conditions in the country deteriorated and talks to find a buyer for the business failed.

The Australian business accounts for 7% of Mothercare’s international retail sales. The retailer said it expects minimal profit impact.

Mothercare Australia had been in talks with The Myer Family Company to sell the business but these ended inconclusively. The Australian arm is a separate entity to the UK business, which has an indirect minority stake in it.

Mothercare made a £10.6m provision to cover the remaining value of its investment in and receivables due from the Australian business.

International growth is a key plank in the maternity specialist’s turnaround plan. It said the administration “does not change our overall view of International profitability going forward”.

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