Struggling retailer Mothercare said it was in “constructive dialogue” with its lenders as a return to growth in its online business bolstered sales in an otherwise disappointing first update under its new boss.
The mother and baby retailer is reportedly hoping to reduce costs by entering a company voluntary arrangement (CVA) – a form of insolvency aimed at protecting a business from going bust by reducing its costs, which could lead to Mothercare closing a third of its 143 stores in the UK.
Total sales in the UK were down 5.6% in the 12 weeks to March 24, compared with the same period the previous year, while international in-store sales were down 11%, including currency fluctuations.
The FT included Mothercare in its piece detailing a clutch of UK retailers that reported weak trading and store closures on Thursday in the latest sign the high street is struggling with rising costs, oversized property estates and downbeat consumer sentiment.
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