Baby products retailer says it has ‘stabilised’ despite posting further losses after seeing half-year sales tumble
Baby products retailer Mothercare says it has “stabilised” and plans to rebuild its presence both in the UK and globally despite reporting further losses and a drop in half-year sales. The London-listed company, which operates through franchised stores worldwide, reported pre-tax losses of £1.4 million for the six months to September 27, compared to losses of £1.8 million the previous year.
Sales by franchise partners fell 25% to £90.7 million, or 22% lower on a constant currency basis, due to store closures in the Middle East and the upcoming end of its exclusive partnership with high street retailer Boots in the UK. Underlying earnings for the first half more than halved to £800,000, down from £1.7 million a year earlier.
Despite these trading pressures, Chairman Clive Whiley stated that the firm had “stabilised” thanks to efforts to downsize the business and reduce its debts, which decreased 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 considering refinancing options after breaching the terms of a key lending agreement, meaning a loan with its main lender is now repayable on demand.
Mothercare commented: “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.”
The retailer has been pursuing a transformation strategy over several years. As part of the company’s restructuring efforts, it secured a £30 million joint venture agreement with Reliance Brands UK last October covering South Asia, alongside a licensing deal with Ebebek for Turkey.
Mr Whiley noted these arrangements were “now bearing fruit”.
However, the business remains in search of a new chief executive, with daily operations currently managed by the chief financial officer and broader executive team, under Mr Whiley’s supervision.
“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.
