Mothercare Ireland has been placed into examinership in a bid to protect its 18 stores and 276 jobs.
The company said it is struggling to contend with rents that significantly exceed current market rents and that it cannot afford to support unprofitable stores.
Mothercare Ireland is a franchise of Mothercare UK and has traded in the country for 23 years.
It will restructure under the protection of the court and interim examiner Declan McDonald of PricewaterhouseCoopers.
Drapers understands that the Irish franchise contributes less than 5% of the main Mothercare group’s sales and it is not a material part of the group’s business.
The franchise owes money to Mothercare in the UK, which has extended credit terms as it tries to support the Irish company.
It plans to trade as normal through the examinership process and will work alongside Mothercare UK to reach a solution as soon as possible.