Mothercare to close more stores
Mothercare has announced it is closing another nine outlets, leading to the loss of around 100 jobs.
The store closures mean a total of 60 stores will now be shut by June next year, putting 900 jobs at risk.
The struggling retailer said Children’s World has been placed into administration and as a result it will transfer 13 of its 22 stores to Mothercare.
Last month, the baby paraphernalia retailer rehired Mark NewtonJones as its chief executive and announced plans to close 50 stores as part of a rescue plan.
The new announcement will put 900 jobs at risk, up from the 800 previously stated.
The Mothercare store in Cardiff’s St David’s Centre closed at the beginning of 2017 in what was then described as “part of a larger transformation plan for our business to reconfigure our store estate and provide a truly omnichannel shopping experience for our customers”.
In May a memo was released on Twitter by Scottish property consultancy Ditchfield Property which names 49 shops that appear to be those at risk of closure. On the list were two Welsh outlets, Friars Walk, Newport, and the Victoria Centre, Llandudno. Mothercare did not comment on the purported leak.
The closures will be carried out through a company voluntary arrangement (CVA) – a move which would allow it to close loss-making shops and secure rental discounts.
Clive Whiley, Mothercare’s interim executive chairman, said: “The last three months of hard work and progress have put in place the foundations to get Mothercare back to where it should be as a fit-for-purpose business with a stronger and more efficient structure both for our UK business and our international franchisees.”
Mothercare’s struggle comes just months after Toys R Us’ UK collapse with a loss of all 100 stores and 3,000 jobs.
On the same day as Toys R Us, Maplin also went into administration.
High-street fashion chain New Look revealed a new restructuring plan in March, with 60 closures in the pipeline. House of Fraser is closing a number of outlets, including both stores in Wales.
The store in Cardiff, also known as Howells, and the outlet in Cwmbran are expected to close in January 2019. The struggling department store chain is closing 31 out of its 59 outlets through a Company Voluntary Arrangement (CVA), which will also allow it to secure rent reductions on its remaining shops.
Restaurant chains Chimichanga, Jamie’s Italian and Prezzo have also lined up closures for the coming months.
Mothercare’s chief executive Mark Newton-Jones said: “After a very challenging period for our business, we have now finalised arrangements to restructure and refinance the group, ensuring that the transformation of the Mothercare brand we started four years ago can now be completed.
“Mothercare is a great British brand with over 50 years of heritage and we now have the financing in place to take it forward for many more years to come.
“We have seen an unprecedented period for UK retail and we have not been alone in facing a number of strong headwinds. I’m pleased to say, however, that we are now in a position to refocus on our customers and improve the Mothercare brand both in the UK and across the globe.”