Mothercare looking to ‘rebuild scale’ in UK and worldwide

Baby products retailer Mothercare has said it is looking to rebuild its presence in the UK and worldwide despite posting further losses after seeing half-year sales tumble.

The London-listed firm, which sells its ranges through franchised stores across the globe, reported pre-tax losses of £1.4 million for the six months to September 27, against losses of £1.8 million a year ago.

Sales by franchise partners slumped 25% to £90.7 million, or 22% lower on a constant currency basis, as trading was knocked by store closures in the Middle East and the imminent ending of its exclusive tie-up with high street retailer Boots in the UK.

Underlying earnings more than halved to £800,000 in the first half, down from £1.7 million a year earlier.

Chairman Clive Whiley said despite the trading pressures, the firm had “stabilised” thanks to moves to downsize the business and cut its debts, which fell to £5.8 million from £17.1 million in September last year.

He said: “From this position of relative strength our key focus for 2026 is to pursue options to rebuild our scale and operations both in the UK and globally, alongside pursuing the refinancing of our existing debt financing facilities.”

The group also confirmed it is mulling refinancing options after breaching the terms of a key lending agreement.

It said this meant a loan with its main lender was now repayable on demand.

Mothercare said: “The group continues to benefit from the ongoing support of its lender and we have regular and positive discussions with them.

“We continue to have sufficient cash to trade for the foreseeable future.”

Mothercare has been working on a transformation plan for a number of years.

As part of the group’s overhaul, it struck a £30 million joint venture deal with Reliance Brands UK in October last year across South Asia and a licence agreement for Turkey, with Ebebek.

Mr Whiley said these deals were “now bearing fruit”.

But the firm is still looking for a new chief executive, with day-to-day management being run by the chief financial officer and the wider operating board, with oversight from Mr Whiley.

“We continue to anticipate the search for a new chief executive officer to be fulfilled as a natural consequence of the multiple strategic discussions currently in train,” he said.