Mothercare has announced plans to put its UK retail business into administration, putting thousands of jobs at risk.
The baby goods retailer has 79 stores in the UK, employing around 500 full-time staff and 2,000 part-time employees.
The global Mothercare group said a review of the UK business found that it is not "capable of returning to a level of structural profitability".
In a statement on the company website, Mothercare said that the UK arm of the business lost £36.3m in the financial year ended March 2019.
It is therefore filing the notice of intent to appoint administrators today as part of the restructuring and refinancing process.
However, it added that the global group remained profitable - generating £500 million in revenue annually - despite problems in its UK division.
Shares in the parent company dived by 29.2 per cent to 8p in early trading this morning.
The business is set to follow the likes of Bonmarche, Jack Wills and Karen Millen, which have all gone bust in recent months.
Discussing the news on Twitter, one Mothercare customer wrote: "Very sad... another old retailer on the brink. I feel for all the colleagues. Worrying times. But I have to say, after being a grandad for a few years they are super expensive."
Another said: "Mothercare going bust is very sad. When my two were babies, the support and knowledge of the staff was very welcome to a new parent."