// Mothercare records loss before tax of £87.3m
// The loss is a result of Mothercare’s restructuring plan
// Restructuring caused low consumer confidence
Mothercare has reported a loss before tax of £87.3 million for the 53 weeks to March 30.
The British retailer said sales have plunged thanks to last year’s restructuring resulting in reduced consumer confidence.
Mothercare said it had completed restructuring ahead of schedule, reducing its UK store portfolio from 134 stores to 79.
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Last year Mothercare saw its sales fall by almost nine per cent as its losses widened to £87.3 million, which led to the company closing almost a third of its stores. It is now left with 79 and will develop its online sales.
Meanwhile, Mothercare chief executive Mark Newton-Jones said the company was on a “sounder footing” after the sale of the Early Learning Centre.
“We have achieved a huge amount this year, refinancing, restructuring and reorganising Mothercare to ensure a sustainable future for the business,” chief executive Mark Newton-Jones said.
“The majority of that work is now done, including the completion of our store closure programme, leaving us with 79 stores which are well positioned to support our UK customer base.”
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7 Comments. Leave new
I genuinely feel that this is not the last of the bad news out of Mothercare.
So, each store carries a debt of over £1m in losses. How long shall this take to earn it back? Does it needs a miracle?!
Only God can do miracles not the CEO!
Marc NJ
Is so far removed from the problems is scary, MC won’t be around in 18 months
I cannot see Mothercare continuing in the UK as it is.
It faces a takeover or administration within the next 2 years tops !
Why the supermarkets and online do it cheaper as does John Lewis Partnership too.
Early Learning Centre have found a good saviour with The Entertainer !
It’s amazing a company with 79 stores can lose 87million.
I find it hard to understand how a brand that has a built in and constant supply of customers (expectant mothers) can still continue to loose money? I feel like this “Mothercare looses money” story gets recycled year in year out for the last decade or more.
It’s not rocket science. Downsize your store footprint, locate stores in regions with steady or increasing birth rates, have the right merchandise in the right stores and invest in your online offering and delivery.