LABOUR demanded government intervention today to save thousands of jobs after ailing high street store chain Mothercare said it was going into administration.

More than 2,500 jobs are at risk after the children’s and maternity retailer announced its intention to appoint administrators to oversee the closure of its 79 shops.

Earlier this year, the company registered a £36.9 million loss of profit and had already closed 55 branches in a bid to keep the business afloat.

However, the closures dented profits further, leading to a 23.2 per cent decline in shop sales for the 15 weeks to July.

A subsequent internal review of Mothercare’s business and trading conduct in Britain carried out by its global leadership found the company incapable of “returning to a level of structural profitability” and recommend store closures as part of a restructuring process.

The position of the company’s 500 full-time and 2,000 part-time staff remains unclear.

Shadow business secretary Rebecca Long Bailey demanded that the government step in, warning: “Mothercare disappearing from our high streets would be a huge loss to the new parents who rely on it and the thousands of workers whose jobs are at risk.

“Under the Conservatives, our high streets continue to suffer. They are at the heart of our communities and desperately need saving.

“Labour’s five-point plan will rejuvenate Britain’s town centres and protect jobs.”

The collapse of Mothercare reflects the growing financial pressure on high street stores.

In recent months, major retailers such as Bonmarche, Jack Wills and Karen Millen have filed for closure.

Mothercare stores are expected to stay open until the business has been wound down by the administrators.

Usdaw national officer Dave Gill said it the union was providing members at Mothercare with support and advice.

“We will urge the administrators to treat the staff with dignity and respect, keep them fully informed through the administration process, do everything possible to save jobs and keep as many stores open as possible and prioritise stabilising the business to provide a more certain future,” he said.

“The scale of company administrations we have seen in recent years is devastating, not just for staff but also for our communities and shopping centres.”

Usdaw’s Save Our Shops petition calls on the government to urgently adopt an industrial strategy to protect the declining retail sector.