Mothercare has slipped into the red ahead of completing a refinancing to ensure the group has “adequate and appropriate financing for the future”.
The nursery retailer posted a pre-tax loss of £0.1m in the year to 25 March 2023, down from a profit of £12.1m the year before.
Sales for the period dropped 11% to £73.1m.
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The retailer, which licenses its brand since the collapse of its UK arm in 2019, shared that first quarter sales of FY24 were down 15% to £132.5m due to the “continuing challenges” for its Middle Eastern franchisees.
Mothercare chair Clive Whiley said: “I am pleased with the progress Mothercare has made during the year as we continue our transformation towards an asset-light, global franchising business.
“We have a compelling market opportunity. Mothercare remains in an unparalleled position of being a highly trusted British heritage brand, with a significant opportunity to leverage this brand equity and grow our global presence beyond our existing franchise network.
“There is still work to do, but we are excited about the future prospects for Mothercare as we leave behind the turmoil of recent years.”
Whiley and the retailer’s finance boss Andrew Cook are currently leading the business after chief executive Daniel Le Vesconte stepped down in June after just five months at the helm.
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