Mothercare remains locked in talks over refinancing

MOTHERCARE REPORTED a 2.8 per cent fall in like-for-like sales in the first three months of 2018 as it remains locked in talks with lenders over a refinancing deal.

Trading on the British high street is proving to be tough as store footfall tumbled.

However, the firm said online sales returned to growth in the UK, expanding by 2.1 per cent in the 12 weeks to March 24 this year.

The update comes amid a period of turbulence for Mothercare, which replaced boss Mark Newton-Jones last week and continues to pursue a stay of execution from lenders over its financial position.

It is also reportedly weighing a company voluntary arrangement, a move which would allow it to close loss-making shops and secure deep discounts on rental costs.

New chief executive David Wood said his immediate priority was to ensure Mothercare returned to firmer financial ground.

He said: “The UK retail trading environment remained relatively muted in the quarter, with a continuing trend of lower footfall in stores, though there was an encouraging return to growth online, with website sales in particular growing at 7.2 per cent.”

International sales fell 3.7 per cent, as growth in the Middle East failed to offset declining footfall in Russia.

Total group sales fell by 0.3 per cent.

While the firm made “good progress” in driving down its store estate and overall costs, it said greater focus was needed on customer experience to help restore its reputation as a prime destination for parents.