Mothercare restructuring: 79 shops and 2,500 jobs in danger
The future of more than 2,500 jobs and 79 stores are at risk after Mothercare begins restructuring.
Consultants from accounting firm KPMG have been called in to help save the ailing retailer, which lost £36.3 million last year.
What next for Mothercare?
Mothercare, which was founded in 1961 in Surrey, is said to be considering selling off its UK arm in a bid to balance the books.
The company operates a huge international business of more than 400 stores through a system of franchises, which executives could choose to copy in the UK.
It would mean closing its remaining 79 stores and operating more like a supplier than a retailer.
A troubled decade
Mothercare’s UK business has struggled to turn a profit for more than 10 years, and has built up significant debts. The company has cut costs, and closed 58 stores over the past 18 months in an effort to balance the books.
While executives claim that the company will be debt free by 2020, it still faces an uphill struggle in an increasingly competitive market, and Mothercare’s share price has almost halved since June this year.
In January it was revealed that even Mothercare’s online sales were struggling, falling by 16 per cent over 12 months.
In March, the company sold off its Early Learning Centre arm for £13.5 million, stating that it did not have the money needed to invest in the brand.
Mothercare Stores in the UK
Kingston Upon Thames
Stoke On Trent
Kingston Upon Hull