Beleaguered UK retailer Mothercare has confirmed 150 jobs are at risk as it embarks on a cost-cutting drive to future-proof its business.
In a statement to just-style today (31 October), the group said it had been speaking with staff regarding the next stage of its “transformation [to a] sustainable, global brand”.
Go deeper with GlobalData
The move is an advancement on efforts announced earlier this year to meet a GBP19m (US$24.2m) cost savings target outlined by creditors as part of a rescue plan for the business.
Following a set of “disastrous” full-year results in May, which saw the ailing UK-based mother, baby and children’s goods retailer post a GBP72.8m loss compared to a GBP7.1m profit a year earlier, Mothercare said it would close 50 stores and rehire its CEO Mark Newton-Jones under a new strategy aimed at securing the financial footing of the company. Four weeks later it announced a further ten locations would be shuttered and placed its Children’s World subsidiary into administration.
In July, investors approved a move to raise an additional GBP32.5m through the placing of new shares.
See Also:
Today’s announcement revealed the group is now creating a separate corporate entity — Mothercare Global Brand — which will be responsible for developing the Mothercare strategy, maximising the value of our global brand, designing own-brand products and acting as the custodians of the brand”.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe UK business, it adds, “will operate with the discipline of one of our international franchises with the autonomy to focus its offer on an in-depth specialist knowledge of its domestic market”.
“These entities will be supported by more efficient and effective central business services from our Head Office.”
While the move will potentially result in 200 redundancies across its current head office structure, 50 new roles will be created.
“We will redeploy staff where possible,” the group says. “We will be supporting our colleagues throughout the consultation process.”
