Mothercare posts first half loss
Mothercare has posted a loss in the first half of its financial year, although the company said its restructuring is now almost complete.
The retailer said its worldwide sales fell by 42% to 189.2 million in the period as it reported a group adjusted loss before taxation from continuing operations of £4.4 million.
Clive Whiley, chairman of Mothercare, said: “The restructuring phase of Mothercare is now all but complete. 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.”
During the half year, Mothercare signed a ten year franchise agreement with Boots to enable Mothercare branded products to be sold in Boots stores and on the retailer’s website. It also embarked on a new 20-year franchise agreement with Alshaya Group, its biggest partner.
Whiley added: “We have diligently managed our way through this period of global crisis, and we emerge in better shape than we went into it. We have refinanced the business alongside commencing our new arrangements with Boots for the UK and Ireland and we are now operating our innovative, working capital light arrangements with our manufacturing and franchise partners around the globe for the Autumn/Winter 2020 collections.
“With these foundations in place Mothercare can move forward again with confidence as a profitable and cash generative international franchise business both in store and online, generating revenues through an asset-light model in the UK and some 40 international territories.”
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