Mothercare secures refinancing deal
Mothercare has announced a drop in full year sales as it confirmed that it has secured a refinancing deal.
In the 53 weeks to 30 March, worldwide retail sales by franchise partners fell to £280.8 million from £322.7 million in the previous year.
Meanwhile, adjusted EBITDA rose to £6.9 million from a prior £6.7 million as the company swung to a pre-tax profit of £3.3 million from a loss of £0.1 million in the prior 12-month period.
Mothercare has refinanced its existing debt facilities with Gordon Brothers and also formed a joint venture with Reliance Brands to strengthen its presence in the South East Asia region.
Clive Whiley, chairman of Mothercare, said: “Today’s agreements with Reliance and Gordon Brothers strengthen our operations in South Asia and support a material reduction in our bank facilities and leverage.
“Taking today’s developments together with the inherent strength of the business’s brand, we believe Mothercare can approach 2025 and beyond with a renewed and growing sense of confidence at the opportunities ahead, notwithstanding our ongoing cautious shorter term outlook, given the continuing challenges facing our Middle East operations.”
