What does the Mothercare administration mean for gift cards, vouchers and warranties?

Customers with Mothercare gift cards, vouchers and warranties can still use these now the children’s retailer has gone into administration.

The firm announced this morning it was unable to meet “ongoing cash needs”, putting around 2,500 jobs at risk if a restructuring rescue plan fails.

Mothercare gift cards and vouchers, which can be worth up to £500 each, can still be spent as the company remains trading. But if the firm does go insolvent these gift cards and vouchers will become useless.

 A Mothercare spokesman said gift cards were still active, but said: “It is uncertain what happens once the administrators take control. I would encourage customers to use them as soon as possible.”

If the retailer goes bust then customers can register a claim with the liquidators to get this money back. However, this depends on there being enough cash left to pay back everyone the company owed money to. Consumers are typically at the bottom of the list of creditors to be repaid. 

Any company that buys Mothercare would have no legal obligation to honour the old cards and vouchers, leaving them worthless.