More retail pain
Mothercare is set to close 50 stores, putting 800 jobs at risk.
The company also said it would reappoint Mark Newton-Jones, the chief executive who left in April following a profit warning.
In a statement, Mothercare said: “Recent financial performance, impacted in particular by a large number of legacy loss making stores within the UK estate, has resulted in a perilous financial condition for the group.”
Richard Lim, chief executive, Retail Economics said: “This is turning out to be a year of distress for the retail sector. The pace of structural change is accelerating and restructuring store portfolios is at the top of the agenda in many retail boardrooms across the country.
“The announcement to close such a significant number of stores highlights the unyielding shift towards online shopping and the overcapacity concerns faced by a significant proportion of the market. Focusing on prime locations with sustainable levels of footfall, pushing forward right-sizing initiatives and utilising excess space to sweat assets will be critical in forming business models that are fit-for-purpose in today’s digital age.”