Mothercare ‘on track’ with transformation plan a week after closure of stores
Mother and baby retailer Mothercare has announced it is ‘broadly on track’ to deliver its transformation plan.
The retailer, which closed the doors of its store network last week, has said it is progressing with its plan to become an international ‘asset-light’ franchise operation.
Retailer Boots has become the official franchisee for the firm in the UK, with international options being explored as part of the transformation plan, which was announced back in November.
In terms of financing, the firm has completed the placing of £3.2m new equity, as well as agreeing a temporary £15m increase in its trade partner facility.
Clive Whiley, chairman of Mothercare, commented: “As we approach the completion of our Transformation Plan, Mothercare… once more has a brighter future ahead as a solvent and cash generative group.
“We have made good progress with the Transformation Plan and the risks to achieving the outcomes we laid out in November are increasingly dissipated.
“Our plans for the final steps of the recapitalisation of the group are in hand and whilst the cash realisation from the Mothercare UK administration was lower than anticipated, the progress that we have made elsewhere means that the financing requirement overall is unchanged from our original plans.
“In time we plan to add relevant skills and expertise – particularly in brand and product management – to the team to accelerate our development as an international brand owner and operator.”
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