Havant NOT on a leaked list of Mothercare closures

Lloyd Doyle
May 18, 2018

Mothercare also said it was re-hiring the chief executive it sacked just weeks ago as part of a wide-ranging shake-up.

The closure of the stores will result in hundreds of job losses across the UK. He spent four years attempting to turn the business around, but was ousted by non-executive chairman Alan Parker who retired last month.

Mothercare said the first six months of the financial year had been "positive" but was followed by a "very difficult" second half in the United Kingdom, where sales were impacted by reduced footfall.

Mr Wood will stay on as managing director on the same salary as he was earning as chief executive. As many as 800 jobs could be lost.

Mothercare has remained tight-lipped over the possible closure of its stores in Northern Ireland.

However, according to the leaked list, the city's new store at Marsh Mills is still set to go ahead.

In 2013, the Early Learning Centre and Mothercare outlet store opened within the existing Mothercare (and former Children's World) unit at Parkgate Shopping in Rotherham.

Under the planned restructuring - through a UK-administered "company voluntary arrangement" (CVA), which prevents the firm from going into administration - ailing Mothercare will cut rents at 21 stores, in addition to the planned closures.

The retailer has almost halved its United Kingdom store numbers over the past five years and although it had meant to have 92 stores by 2023, the latest closures will shrink that figure to 73.

Brutal trading conditions for store groups - with pressure on UK disposable incomes compounding intense competition - are also partly responsible for the collapse of Toys R Us UK, electricals group Maplin and drinks wholesaler Conviviality.

Shares in Mothercare were up 5.4 pence at 25.4 pence each by yesterday afternoon, valuing the business at £46m.

"The business was in an unsustainable situation and was in clear need of an appropriate resolution and the comprehensive measures provide a renewed and stable financial structure for the business, and will allow Mothercare to accelerate its adaptation to the shifting dynamic towards online".

Other reports by Iphone Fresh

Discuss This Article