Failing brand in 900 jobs threat

MOTHERCARE is to shut another 60 stores, putting 900 more jobs at risk.

Bosses also said its Children’s World division was being put into administration, with nine out of 22 stores being axed.

The closures added further fuel to the high street decline and the company now hopes to raise £32.5million from shareholders to save the failing British brand.

It has now been revealed 60 outlets will shut by next June – 10 more than the group announced last month.

The closures put 900 jobs in jeopardy, up from the 800 previously stated.

Mothercare has now identified savings of £19million through the process, and hopes to get hold of another

£10m in cash as it fights to stay afloat.

Worse than expected news comes after Mothercare announced a restructuring plan known as a Company

Voluntary Agreement.

Chief executive Mark

Newton-Jones said its UK business had suffered a lack of investment and “hadn’t had a lick of paint” in years.

Mr Newton-Jones said: “We will really be able to speed up the transformation, and by God we need to speed up the transformation because the retail landscape is pretty brutal at the moment.”

Mothercare is also looking for opportunities to grow sales internationally.

Its shares were yesterday down 9% – or 2.45p to 26.15p.

In May, the company unveiled a £72.8m pre-tax loss in the year to March 24. This followed a £7.1m profit in the previous 12 months.