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Mothercare sees losses widening after restructure

Company reports pre-tax loss of £14m for the 28 weeks to October 10, compared to £5.7m loss for same period last year.

Mothercare has seen its losses widen for the past six months following its major restructure.

The chain closed 79 UK stores in January as part of its plan to become an international franchise operation, with a deal secured with Boots to sell goods and maintain the brand in the UK market.

The company reported a pre-tax loss of £14 million for the 28 weeks to October 10, compared with a £5.7 million loss for the same period last year, reported The Industry.Fashion.

Sales from continuing operations stood at £44.4 million – less than half of the £102 million it posted in the same period last year.

At the start of the period, only 27% of Mothercare’s franchise partners’ locations remained open due to restrictions implemented to help slow the spread of COVID-19.

Although it had “substantially recovered” since then, it had still seen an aggregate loss of retail sales to its franchise partners worth around £145 million.

“The restructuring phase of Mothercare is now all but complete,” said Clive Whiley, chairman of Mothercare. “The singular focus of the business is to return Mothercare to its rightful place as the leading global brand for parents and young children and to deliver the operational and financial performance commensurate with that leading position.

“We have diligently managed our way through this period of global crisis and we emerge in better shape than we went into it.”

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