// Mothercare shifts to junior AIM market from London Stock Exchange
// The maternity retailer is mainly focusing on international franchising operations
// Mothercare’s UK business was wound down in February last year
Mothercare has announced its move from the London Stock Exchange to the junior stock market as it continues with restructuring plans.
Since appointing PwC as administrators for Mothercare UK and Mothercare Business Services (MBS) in 2019, the maternity retailer has been focusing on its international franchising operations.
Mothercare’s UK business was subsequently wound down in February last year, resulting in 79 store closures and 2500 redundancies.
The retailer was first listed on the London Stock Exchange in 1972.
Following Mothercare’s store closures in the UK, it confirmed a franchise partnership with Boots last year, which saw Mothercare products being rolled out on Boots’ website.
The Mothercare range also appeared in over 400 Boots stores.
“The admission to AIM marks the conclusion of this final phase of the refinancing and restructuring of Mothercare,” Mothercare chairman Clive Whiley said.
“This period of hard work, effort and forbearance by our staff and stakeholders has paid off, and Mothercare can look forward to a brighter and stable future once more.
“Our resilient performance through the pandemic bears out the robustness of the Mothercare business today.
“We are not immune to the impact of the pandemic on our franchise partners’ operations around the world, but we arrive on AIM today in good shape, with the next step down in our leverage position to be completed shortly with the CULS (Convertible Unsecured Loan Stock) conversion of the £19 million shareholder loans into ordinary shares.
“Mothercare faces the future as a conservatively financed, cash generative and profitable business for the first time in many years. That is an exciting prospect for all of our staff and stakeholders.”
Mothercare will provide a trading update cover the financial year to the end of March shortly after the period end in late April, ahead of final results later this July.