Group MD David Wood has resigned as the company announces it now has a net debt of £21.5m.
High Street baby and child chain Mothercare announced a loss of £6.2m in its interim results released to the market this morning. The company today said it now plans to sell its headquarters in a bid to further reduce its debt, which now stands at £21.5m.
It is battling a year-on-year like-for-like sales decline of 11.1%.
Mothercare is ahead of schedule in its plan to close stores as part of a £19m cost-saving exercise.
Mark Newton-Jones, CEO of Mothercare, commented: “Over this period, we have continued our relentless focus to transform Mothercare into a business that has a sustainable and relevant future for its global customer base. We have completed the capital restructuring of the business, the UK store closure programme is well under way and due for completion earlier than planned, we are making our sourcing operations more efficient and our cost-saving initiatives are well on schedule.”
He continued: “This momentum has allowed us to focus on revising the overall structure of the Group, something which will help drive a greater focus on becoming a stronger global brand, with improved product design, marketing and distribution of Mothercare products around the world. At the same time, in the UK, the team will be singularly focused on managing trading and operations, as a typical franchisee would, with the objective of bringing the UK business back to profitability. Our International business is showing signs of recovery after a difficult few years and some core markets, including Russia, China and Indonesia, have moved into growth.”
“The UK retail environment, however, remains very challenging and given the ongoing uncertainty with consumer confidence, alongside the short-term impacts of our operational changes and restructuring programme, we expect performance in the remainder of our financial year to remain volatile. Thereafter we are confident that our strategy will ultimately reinvigorate the business and restore Mothercare as a leading global specialist for parents and young children.”