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.
By Conor Marlborough
Published 29th Oct 2019, 12:09 BST
Updated 29th Oct 2019, 12:10 BST
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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.

In January it was revealed that even Mothercare’s online sales were struggling, falling by 16 per cent over 12 months.In January it was revealed that even Mothercare’s online sales were struggling, falling by 16 per cent over 12 months.
In January it was revealed that even Mothercare’s online sales were struggling, falling by 16 per cent over 12 months.
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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.

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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

Basildon

Chelmsford

Harlow

Ipswich

Norwich

Peterborough

Stevenage

Watford

West Thurrock

Derby

Leicester

Lincoln

Northampton

Nottingham

Croydon

Edmonton

Greenwich

Harrow

Hayes

Kingston Upon Thames

London

Orpington

Romford

Stratford

Wood Green

Aintree

Bromborough

Chester

Gateshead

Manchester

Prescot

Preston

Warrington

Lisburn

Newry

Newtownabbey

Aberdeen

Dundee

Edinburgh

Falkirk

Glasgow

Aylesbury

Basingstoke

Canterbury

Dartford

Eastbourne

Havant

Milton Keynes

Reading

Slough

Southampton

Bristol

Gloucester

Plymouth

Poole

Swindon

Taunton

Torquay

Truro

Cardiff

Swansea

Dudley

Leamington Spa

Rugby

Solihull

Stoke On Trent

Tamworth

Telford

Worcester

Huddersfield

Huntington

Kingston Upon Hull

Leeds

Sheffield

Wakefield

Related topics:MothercareKPMGSurreyReading