Mothercare to close 50 stores

Mothercare to close 50 stores

Mothercare is set to close 50 stores, putting 800 jobs at risk.

The baby products retailer said it was in a "perilous" financial position. The new plan would see it trade from 78 United Kingdom stores by 2020.

The stores are expected to close within a year. It will have just 78 by 2020, down to 72 two years after that. Mothercare, they told me, was too pricey.

Frances Bishop owner of children's shop The Pud Store, said on Twitter the news had "been coming for a long time".

The company further added that the United Kingdom restructuring plan will involve an accelerated reduction of the United Kingdom store estate to reduce losses and rent liabilities and will be effected through the CVA Proposals. One of the parties concerned, the Pension Protection Fund, has already said it will support the plans.

The company also said it would reappoint the chief executive who left in April following poor Christmas trading and a profits warning.

Parker was instrumental in ousting Newton-Jones, but the former chief executive will now resume his role due to the leadership of interim executive chairman Clive Whiley.

Newton-Jones' replacement as CEO David Wood, a former Tesco executive, will become group managing director.

Clive Whiley, Mothercare's interim executive chairman, said: "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 the restructuring, Mothercare has also arranged a refinancing package worth up to £113.5m.

"These comprehensive measures provide a renewed and stable financial structure for the business and will drive a step change in Mothercare's transformation".

Brutal trading conditions are also partly responsible for the collapse of Toys R Us UK, electricals group Maplin and drinks wholesaler Conviviality.

And after today's news, the chain will operate just 73 stores by 2022.

A number of reasons have been cited for failures on the High Street, including a squeeze on consumers' income, the growth of online shopping and the rising costs of staff, rents and business rates.

Related Articles

  • PTI Summons Parliamentary Meeting for Discussion on FATA Merger

    PTI Summons Parliamentary Meeting for Discussion on FATA Merger

    He vowed to address the party lawmakers' grievances, and said he will talk to the PML-N supremo over the issue. They assured the PTI candidate of their full support for his success in the upcoming general election.
    Nittany Lions Set For Night Showdown Against Pitt

    Nittany Lions Set For Night Showdown Against Pitt

    While it was only inferred that Penn State-Pitt would be under the lights, the game time was made official on Wednesday. The four-game series ends in 2019 at Beaver Stadium, and the programs have no plans to renew over the next decade.
    How to Get the Best Tan from a Tanning Bed

    How to Get the Best Tan from a Tanning Bed

    After your first two or three sessions, you can feel free to increase your exposure time and even the power of the tanning bed. You may be tempted to play some free slot machines with free spins but leave this for after you complete your tanning session.
  • Ministers cut betting machine stakes from £100 to £2

    Ministers cut betting machine stakes from £100 to £2

    Bookmakers have warned that the measure will put 21,000 jobs and 4,000 betting shops at risk.... Following the announcement, the company's shares fell by 2.55%.
    Ayida Honda launches 2018 Amaze at Rs 5.59 lakh

    Ayida Honda launches 2018 Amaze at Rs 5.59 lakh

    Since the Amaze has been designed as a sedan from ground up, it looks relatively proportionate by compact sedan standards. Commenting on Amaze's launch, Nakanishi said the second generation of the compact sedan is built on an all new platform.
    ¥530 Million Loss Causes Japan to Reconsider its Approach to Cryptocurrencies

    ¥530 Million Loss Causes Japan to Reconsider its Approach to Cryptocurrencies

    Other Cryptocurrency Heists Perhaps the most concerning aspect of the Coincheck incident is that it is not the first of its kind. At the recent World Economic Forum in Davos, Switzerland, many leaders reiterated warnings in the dangers of cryptocurrencies.
  • DRC Ebola outbreak enters 'new phase' as it spreads to urban area

    DRC Ebola outbreak enters 'new phase' as it spreads to urban area

    Oly Ilunga Kalenga said a case of the virus was detected in Mbandaka , a city with a population of about 1 million people. The vaccine is complicated to use, requiring storage at a temperature between -60 and -80 degrees Celsius.

    Price to Sales (P/S) Ratio under Review: Ascena Retail Group, Inc. (ASNA)

    Stone Ridge Asset Management LLC purchased a new stake in Ascena Retail Group during the fourth quarter valued at $181,000. In total 3 analysts cover Ascena Retail Group ( NASDAQ : ASNA ). (NYSE:SJI) on Monday, January 8 to "Hold" rating.
    Check Out Which Casino is Best For You With No Deposit Bonuses

    Check Out Which Casino is Best For You With No Deposit Bonuses

    Everyone has to start somewhere, and if you or another first-time player makes a mistake, you would not expect criticism. All the games have rules to follow and there are plenty of online resources that will teach you how to play them.
  • Merkel: It is not right cancelling

    Merkel: It is not right cancelling "nuclear deal" with Iran now

    The best way to address worldwide concern about Iran's role in the region and its ballistic missile programme is within the framework of the nuclear deal.
    Backstreet Boys Talk Heartbreak & First New Music in 5 Years

    Backstreet Boys Talk Heartbreak & First New Music in 5 Years

    Speaking of the new single, Kevin says: "The minute we heard this song we knew it was special". They will also perform at this year's KIIS FM Wango Tango.

    Passing The Cisco CCNA Certification Exam Guide

    The course develops your knowledge and skills according to the digital era, which helps in getting evolution in the network. 3. This will also help in building up the required aptitudes the course requests. · Bifurcate what is important to learn.