Town’s Mothercare store at risk in cuts
MOTHERCARE is to swing the axe on 50 under performing stores resulting in hundreds of job losses.
The retailer, which has a store on Mill Street, will also re-hire the chief executive it sacked just weeks ago as part of a wide-ranging shake-up.
The closures will be carried out through a company voluntary arrangement (CVA) - a move which allows companies to close loss-making shops and secure rental discounts.
Mothercare employs about 3,000 people across 137 outlets.
The company has not yet revealed which stores could close.
It is not known how many staff in the region could be affected.
Chairman Clive Whiley said: “The recent financial performance of the business, impacted in particular by a large number of legacy loss-making stores within the UK estate, has resulted in an unsustainable situation for the Mothercare brand, meaning the group was in clear need of an appropriate resolution.
“These comprehensive measures provide a renewed and stable financial structure for the business and will drive a step change in Mothercare’s transformation. These measures provide a solid platform from which to reposition the group and begin to focus on growth, both in the UK and internationally.”
Retailers across the board have been battered by weak consumer confidence off the back of soaring Brexit-fuelled inflation.
Since January, Toys R Us and Maplin have filed for administration while fashion retailers such as New Look and Select have embarked on radical store closure programmes.