Crimsonwing, the IT solutions provider, yesterday said it will continue to deliver its e-commerce solution as contracted by Mothercare, after the UK nursery brand’s Australian joint venture entered into administration.
Last year, Crimsonwing was commissioned by Mothercare to design and implement an e-commerce solution in all its stores in 50 countries. Chief executive David Walsh had told The Times Business in November that the solution’s delivery to stores in Australia and New Zealand would begin early this year. The Magento-based solution is being designed by the team in Malta, and staff in Marsa is responsible for support after roll-out, under an initial three-year contract.
“Crimsonwing is not expecting any impact of Mothercare Australia going into administration,” the company told The Times Business yesterday. “Mothercare operates in more than 50 countries in Europe, the Middle East and the Far East, and Crimsonwing has been contracted by Mothercare International to deploy e-commerce solutions in at least 30 of these countries.
“Notwithstanding this unfortunate incident for Mothercare Australia, Crimsonwing will continue to execute the implementation of e-commerce solutions in the number of countries as originally planned. Our relationship with Mothercare remains strong and committed.”
UK-based Mothercare, which has a 23 per cent stake in the Australian operation, said yesterday the expected profit impact was minimal – the venture accounted for about seven per cent of its international retail sales.
Mothercare has been scaling down its presence on UK high streets and its network is made up of 269 stores from 311 last year. It has however opened 31 new stores outside the UK since November.
Last year, Mr Walsh had described the Mothercare contract as “a great Malta story”. The Anglo-Dutch company, which has a team of 180-plus in Malta, had directed considerable investment in amassing expertise in Magento, the open-source e-commerce application.
Crimonwing’s consistent investment in expertise in Magento and Microsoft Dynamics, the business solutions platform, has enabled it to win important contracts from major names over the past few months.
Business has been secured from Radisson owner Rezidor, shopping mall giant Westfield, and Dutch construction-related wholesaler Mastermate. Crimsonwing’s price rallied by as much as 42.3 per cent in the few days after the company announced the new business last year.