Published: Thu, May 17, 2018
Sports | By Brooke Harris

Mothercare to swing axe on 50 stores and bring back sacked boss

Mothercare to swing axe on 50 stores and bring back sacked boss

The household favourite has seen sales and profits hammered by intense competition from supermarket groups and online retailers in its main United Kingdom market as well as by rising costs.

The man that had been brought in to replace him, David Wood, will now become managing director.

In what has been a bad year for bricks and mortar retails, so far this in 2018 Toys R Us announced plan to close a further 75 stores in the UK; Carpetright said that it will close 92 of its 400 shops; Prezzo pizza confirmed that it will shut 94 of its 300 restaurants, putting around 500 jobs at risk, and Marks & Spencer announced that 14 stores would close.

Mothercare has announced that 50 stores across the country are to close which could include the Isle of Wight’s only store in Carisbrooke
Mothercare has announced that 50 stores across the country are to close which could include the Isle of Wight’s only store in Carisbrooke

Putting media speculations to rest, Mothercare has confirmed measures to refinance its business and restructuring of its United Kingdom store portfolio.

As part of the rescue plans the company is also going to re-hire the chief executive it sacked just over a month ago.

The steady decline of Mothercare has seen the number of stores around the United Kingdom fall from 400 ten years ago, to just 137. "Mothercare Ireland is a completely separate company and as a result our 15 Irish stores are unaffected by any plans in the proposal and will continue to trade as normal".

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Shares in Mothercare, a popular British high street name, have lost more than two-thirds of their value this year and closed at 21.30 pence on Wednesday.

"Commenting on today's refinancing and United Kingdom restructuring, Clive Whiley, the Company's Interim Executive Chairman, said in a statement: "‎The recent financial performance of the business, impacted in particular by a large number of legacy loss making stores within the United Kingdom estate, has resulted in an unsustainable situation for the Mothercare brand, meaning the Group was in clear need of an appropriate resolution.

As part of its restructuring, Mothercare has also arranged a refinancing package worth up to £113.5m, which includes £28m raised through issuing new shares, and an extension of its existing debt arrangements.

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The CVA will go to a creditors' vote on 1 June.

Mothercare is also seeking...

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