Mothercare unable to confirm future of Stevenage branch amid planned closures

Mothercare unable to confirm future of Stevenage branch amid planned closures

The store closures will be carried out through a company voluntary arrangement (CVA) - a move which allows companies to close loss-making shops and secure rental discounts.

It is not clear which Mothercare stores are under threat from its restructure plans, which includes a refinancing package worth £113.5 million.

Mothercare employs about 3,000 people across 137 outlets in the United Kingdom, including branches in Telford, Walsall, Stafford and at Merry Hill shopping centre.

The retailer, meanwhile, stresses that its recent financial performance, impacted in particular by a large number of legacy loss making stores within the United Kingdom estate, has resulted in an unsustainable situation.

That won't be the only measure Mothercare wants to introduce; it also wants landlords of 21 other sites to agree to "material" rent reductions in a bid to dramatically cut its cost base.

Carpetright has entered into a CVA and announced store closures, as has fashion chain New Look.


Mothercare said in a statement: "Recent financial performance, impacted in particular by a large number of legacy loss making stores within the United Kingdom estate, has resulted in a perilous financial condition for the Group".

"Since my appointment as interim executive chairman, my priority has been to galvanise support from all of our stakeholders and provide a solution to the short-term problems facing the company".

Branding is seen outside a Mothercare store in Altricham, Britain, May 16, 2018. "However, there remains much to do and we must maintain a disciplined focus". The stores are expected to close within a year.

The high street chain made the decision due to the current poor climate for retailers that has already seen Toys R Us and Maplin close down this year.

The sub-£50mln company now has 137 stores up-and-down the United Kingdom but wants to have a portfolio of just 73 by 2022.

As part of the rescue plans the company is also going to re-hire the chief executive it sacked just over a month ago. Poundworld has considered the option, but is now thought to prefer a trade sale.

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