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Baby Products Retailer Mothercare has said it is trying to rebuild its presence in the UK and around the world after a half-year sales decline and despite losses.
The London-listed firm, which sells its range through franchised stores around the world, reported a pre-tax loss of £1.4 million for the six months to September 27, compared with a loss of £1.8 million a year earlier.
sales Revenue from franchise partners fell 25% to £90.7 million, or 22% on a constant currency basis, as trading was hit by store closures. middle east and the imminent termination of its exclusive tie-up with the high street retailer boots In Britain.
Underlying earnings in the first half more than halved to £800,000, from £1.7 million a year earlier.
Chairman Clive Whitey said the company had “stabilised” despite trading pressures, including moves to downsize the business and cut its debts, which had fallen 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 pursue the refinancing of our existing debt financing facilities as well as rebuilding our scale and operations in the UK and globally.”
The group also confirmed it was considering refinancing options after breaching the terms of a major debt agreement.
It said this meant that the loan to its main lender would now be repaid on demand.
Mothercare said: “The group is benefiting from the ongoing support of its lender and we have regular and positive discussions with them.
“We continue to have sufficient cash to operate the business for the foreseeable future.”
Mothercare has been working on the transformation plan for several years.
As part of the group’s overhaul, it signed a £30 million joint venture deal with Reliance Brands UK across South Asia in October last year and a licensing agreement with Abebek for Turkey.
Mr Whitey said these deals were “now bearing fruit”.
But the company is still searching for a new chief executive, with day-to-day management handled by the chief financial officer and the broader steering board, overseen by Mr Whitey.
“We look forward to completing the search for a new Chief Executive Officer as a natural outcome of the many strategic discussions currently underway,” he said.