Mothercare faces upward battle
With UK sales for the quarter to March 24th down by 5.6 per cent compared with the same period for last year and international in-store sales down by 11 per cent including currency fluctuations, only online sales - up by 2.1 per cent - gave any reason for cheer at Mothercare. The retailer which has been widely reported as considering a CVA in order to regroup has closed six stores this year but is still burdened with 137.
Recently appointed CEO David Wood, who replaced Mark Newton-Jones this month, said that his immediate priority is to ensure Mothercare is put back a sound financial footing and to improve its financial performance. He acknowledged that the British retail environment was experiencing a trend of lower footfall in stores and that the business is in constructive dialogue with its financing partners in respect of its financing needs for FY19 and beyond.
The company has made no official comment about seeking a CVA with its creditors.