Maternity and early-years retailer, Mothercare, has today issued an update on their Transformation Plan announced last year November, revealing “significant progress” in the past 12 weeks.
As revealed by Commercial People last year, the retailer had previously called for administration after the company announced they were “unable to continue to satisfy the ongoing cash needs” of Mothercare UK.
The announcement released earlier on the London Stock Exchange revealed that Mothercare has successfully raised £8.7m from investors and has had a “substantial reduction” ion the amount of bank debt the Group-owned as a result of the administration of the UK franchise.
As the company nears the completion of their plan, Mothercare announced a series of board changes, including current Chief Executive Officer, Mark Newton-Jones, stepping down from his role with Chief Financial Officer Glyn Hughes (who presided over the firm during its restructuring) replacing him in the interim.
Current Mothercare Chairman Clive Whiley said: “As we approach the completion of our Transformation Plan, Mothercare – one of the leading global brands for parents and young children – once more has a brighter future ahead as a solvent and cash generative Group. We have made good progress with the Transformation Plan, and the risks to achieving the outcomes we laid out in November are increasingly dissipated.
Our plans for the final steps of the recapitalisation of the Group are in hand and whilst the cash realisation from the Mothercare UK administration was lower than anticipated, the progress that we have made elsewhere means that the financing requirement overall is unchanged from our original plans.
The board changes announced today align the management of Mothercare with that of its new structure as an international franchise brand and will contribute to a further overhead reduction. In time we plan to add relevant skills and expertise – particularly in brand and product management – to the team to accelerate our development as an international brand owner and operator.
Finally, I would like to thank Mark for his contribution to the business over what has proved to be a turbulent period, and I am delighted that we will be able to call upon his retail experience as we go forward.”
Mothercare UK closed all 79 stores and ceased trading in November, causing the loss of 2,800 jobs.