Chief executive Mark Newton-Jones has stepped down as part of the retailer’s plans for the future which will see it moving forward as an international franchise operation, operating in over 40 international territories.
Mothercare appointed administrators for its UK business in early November 2019, confirming the closure of all 79 UK stores. The nursery and maternity retailer hoped to focus on strengthening its global brand, improving product design, marketing and distribution for its global franchisees.
The retailer said it is ‘broadly on track’ with this plan, having raised £8.7 million from existing investors. The latest report from the company siad that there has been a ‘substantial reduction’ in the bank debt of the group through the administration of Mothercare UK.
In December 2019, the group went on to sign a franchise deal with Boots UK, which will see the health and beauty retailer stocking Mothercare-branded clothing, home and travel products, including pushchairs and car seats.
“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,” said Mothercare UK chairman Clive Whiley.
“We have made good progress with the transformation plan,” he continued, “and the risks to achieving the outcomes we laid out in November are increasingly dissipated.”
A number of board changes were also announced, in addition to Mark stepping down as ceo. Glyn Hughes, who has been the chief financial officer during the restructuring period, will be taking over as interim chief executive officer with immediate effect, while corporate development director Andrew Cook will be stepping up as cfo.
