ANOTHER High Street powerhouse has unveiled a closure plan as Mothercare reveals it will axe 50 branches.
The retailer, which specialises in maternity, baby and toddler clothing, also owns the Early Learning Centre Brand and has sites across Scotland in its 137-strong UK branch network, which employs 3000 people.
These include sites in Inverness, Aberdeen, Ayr and Falkirk, with others in Coatbridge, Kirkcaldy and Paisley.
It is not yet known which outlets will close, but hundreds of jobs are expected to be lost across the UK.
The closures will be carried out though a company voluntary arrangement (CVA), which allows firms to get rid of loss-making shops and secure rental discounts.
As part of the restructuring, Mothercare also announced a refinancing package worth up to £113.5 million. This includes £2m from Dundee publisher DC Thomson.
Meanwhile, Mark Newton Jones, who lost the role of chief executive last month, will return to the position, with his replacement David Wood becoming managing director.
Chairman Clive Whiley said the measures will drive a “step change” in the company’s fortunes and the share price rose by almost 24 per cent yesterday following the announcement, which comes alongside a brutal set of annual results.
Mothercare swung to a £72.8m pre-tax loss in the year to March 24, which compares with a £7.1m profit in 2017.
On an adjusted basis, pre-tax profits plummeted 88.3% to just £2.3m. In the UK, losses swelled from £9.7m to £79.4m.
Wood said: “The business saw a softening in the UK market from the end of September onwards with store sales down for much of the second half.
“International markets remained challenging during the year, with a number of key markets underperforming, although the return to moderate growth in the Middle East towards the end of the year is encouraging.
“The business has modernised significantly over recent years, but we expect the changing dynamics and challenges in the retail sector to continue, so we need to move faster with the execution of our transformation plans.”
Retailers across the board have been battered by weak consumer confidence off the back of soaring inflation.
Since January, Toys R Us and Maplin have filed for administration, while fashion retailers such as New Look and Select have embarked on radical store closure programmes.
Department store chain Frasers, founded in Glasgow around 170 years ago, also has plans to reduce its portfolio.
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