Mothercare gives transformation plan update
Mothercare has said it is continuing to make progress with its plans to become a profitable international franchise operation.
However, the company said the coronavirus outbreak has been having direct consequences due to the disruption caused within the businesses of its franchise partners and suppliers. It also said that challenges faced by its franchise partners during the outbreak are likely to lead to a material impact on its short-term revenues.
While many of its UK staff are working from home throughout the crisis, Mothercare has used the government’s support scheme to furlough 430 of its Boots Mini-Club retail staff.
The company said plans for Boots UK to become the exclusive franchisee of the Mothercare brand for the UK remain on track, although the process of finalising detailed contractual arrangements have been delayed due to the coronavirus outbreak. Mothercare now expects a wider Mothercare product range to become available online and in Boots stores from late summer 2020.
Clive Whiley, chairman of Mothercare, said: “In the current circumstances, we have activated our contingency plans to deal with the challenges that we and others are facing in the current global crisis, focusing on the well-being of our colleagues alongside our ongoing business and corporate liquidity. We continue to enjoy the support of our key stakeholders and financing partners and we are very grateful to them at this unprecedented time.”
