Mothercare slashes 200 jobs amid restructure

1905

Mothercare is has slashed around 200 jobs today as part of an ongoing restructure to keep the retailer from going under.

According to Sky News, 200 staff were informed this morning that their roles would be axed as the struggling business scrambles to meet a cost saving target of £19 million.

It is understood that Mothercare would also create 50 new roles as part of the restructure.

“We have today been communicating with our staff regarding the next stage of Mothercare’s transformation to ensure we have a sustainable, global brand which can be the leading global specialist for parents and young children,” Mothercare told Sky News.

“This follows the comprehensive measures taken in recent months to provide a renewed and stable financial structure for the group.”

Earlier this year Mothercare approved plans to push forward a CVA, which is due to see 60 stores close and potentially lead to a total of 900 job losses.

This will leave it with a total estate of 77 stores when the process is completed next June, 19 of which will have their rent prices significantly reduced.

In May, the retailer revealed a £72.8 million pre-tax loss in its fiscal year ending March 24, compared to a £7.1 million profit in 2016/17.

On an adjusted basis, pre-tax profit plunged 88.3 per cent year-on-year from £19.7 million down to a mere £2.3 million, although this is in line with guidance given in January.

Mothercare said this loss came about from a raft of restructuring and closure costs, as well as store asset impairments and onerous leases.

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