Axe hanging over branches of Mothercare
SHOCKED residents are taking to social media after Mothercare announced it will close 50 of its stores.
The retailer, which has stores in Portsmouth’s Commercial Road and Solent Retail Park in Havant – which was opened in 2016 – revealed yesterday that it will close 50 of its 137 branches.
The closures will be carried out through a company voluntary arrangement – a move which allows companies to close loss-making shops and secure rental discounts.
The list of stores due to be axed has not yet been released, but the news is thought to be imminent.
The company hopes the shake-up will prevent it from falling into administration.
On Facebook, Liza Lashley said: ‘I don’t think I can recall a time where so many major businesses have had to close their stores or go in to liquidation. What on earth is going on? It’s worrying.’
Ray Sheppard said: ‘Another shop from my childhood diminished.’
Chairman Clive Whiley said: ‘The recent financial performance of the business, impacted in particular by a large number of legacy loss-making stores within the UK estate, has resulted in an unsustainable situation for the Mothercare brand, meaning the group was in clear need of an appropriate resolution.
‘These comprehensive measures provide a renewed and stable financial structure for the business and will drive a step change in Mothercare’s transformation.’
Since January, Toys R Us and Maplin have filed for administration, while fashion retailers such as New Look and Select have embarked on store closure programmes.