Despite the baby and kids wear sector being an area of opportunity and growth, My Baby Warehouse has been placed into Administration - as was UK import Mothercare a few years ago. Pumpkin Patch has also been struggling for some time. Pressures from larger players such as Cotton On and KMart, as well as domestic and international online niche offerings have squeezed this mid-market business to collapse. Also expect their large floor spaces, high inventory levels as well as margin pressure from the lower dollar will have impacted their business. Unfortunately at this time of year, or in Ferbaury/March, when cashflow is tight, retail businesses fall over.
A major baby product retailer that operates online and through a chain of stores across Sydney has gone into administration.Administrator Cor Cordis was appointed last week to Baby Zone (Aust) and BHLS Services, which both trade as My Baby Warehouse, selling prams, cots, toys and baby clothes.