Mothercare downsizes boardroom to reduce costs

1156
Mothercare boardroom
// Mothercare has reduced its board of directors in a new cost-cutting drive
// CEO Mark Newton-Jones said the board now has directors who are more hands-on with the company’s restructuring
// The boardroom reshuffle will halve its cost next year

Mothercare has reduced the size of its board of directors in a bid to overturn its financial losses.

The retailer’s chief executive Mark Newton-Jones said the company has added more restructuring experts and the board now has directors who are more hands-on with the company’s restructuring.

Mothercare said that the boardroom reshuffle will halve its cost next year.

Newton-Jones, who was ousted from the role and then re-hired a month later, spoke on Mothercare’s boardroom restructure at a conference this week.

“We had a board that was of a scale appropriate for a much larger company,” he said at a Times CEO Summit panel. “We now have a board that is very operational and is contributing beyond governance,” he said.

Mothercare posted its financial results for the year ended 30 March last month and acclaimed its progress following a CVA.

However, the company’s losses widened by almost 20 per cent to £87.3 million, while group revenues fell 7.9 per cent to £1.07 billion for the year.

Click here to sign up to Retail Gazette‘s free daily email newsletter