Mothercare staff offered no redundancy and told by bosses to get government help
Mothercare workers have been told they will get no redundancy pay after the company collapsed into administration.
Loyal workers have instead been told to visit the government’s website and apply for statutory redundancy.
Staff at the company’s head office got the message on Friday, The Sun reports.
The government scheme is usually limited to a week’s pay for each year’s service.
One source said: “There were people in that meeting who have been there for decades.
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“The Government redundancy money can take up to six weeks, with Christmas around the corner, as well.”
Meanwhile, Chairman Clive Whiley got a £240,000 bonus, chief executive Mark Newton-Jones got £158,000, and finance boss Glyn Hughes was awarded an extra £163,000.
A Mothercare spokesman told the Daily Star Online: "It is with deep regret and sadness that we have been unable to avoid the administration of Mothercare UK and Mothercare Business Services, and we fully understand the significant impact on those UK colleagues and business partners who are affected.
“However, the Board concluded that the administration processes serve the wider interests of ensuring a sustainable future for the Company, including the wider Group's global colleagues, its pension fund, lenders and other stakeholders.”
Mothercare confirmed it is closing all of its UK shopsand stopping online business last week, with 2,800 people set to lose their jobs.
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The Brit High Street staple, which opened its first shop in 1961, has struggled to compete with online shopping.
PricewaterhouseCoopers has been appointed the administrator for the chain.
Zelf Hussain, joint administrator and PwC partner, said: “This is a sad moment for a well-known high street name. No one is immune from the challenging conditions faced by the UK retail sector.
"Like many other retailers, Mothercare has been hit hard by increasing cost pressures and changes in consumer spending."
Clive Whiley, Chairman of Mothercare said: "It is with deep regret and sadness that we have been unable to avoid the administration of Mothercare UK and Mothercare Business Services, and we fully understand the significant impact on those UK colleagues and business partners who are affected.
Mothercare to collapse into administration – hundreds of jobs at risk
"The UK high street is facing a near existential problem with intensifying and compounding pressures across numerous fronts, most notably the high levels of rent and rates and the continuing shifts in consumer behaviour from high street to online.
"Mothercare UK is far from immune to these headwinds despite the strength of the Mothercare brand, its exclusive and quality product range and recognised customer service.
"Despite the changes implemented over the last 18 months contributing to a significant reduction in net debt over the same period, Mothercare UK continues to consume cash on an unsustainable basis."
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