Mothercare, the leading UK based retailer has recently confirmed that over 200 jobs are at risk as it embarks on cost cutting drive to future proof its business
The move is an advancement on efforts that were announced earlier this year to meet cost savings target of US $ 24.2 million (GBP 19 million) outlined by creditors as a part of the rescue plan for the business.
Following the set of disastrous results in May, the ailing UK based mother, baby and children goods retailers has incurred a loss of GBP 2.8 million as compared to GBP 7.1 million profit a year earlier. Moreover, the retailer has decided to shut 50 stores and rehire its’ CEO Mark Newton Jones under a new strategy aimed at securing the financial position of the company. The company later announced to further close down ten more stores and placed its’ Children World subsidiary into administration.
It is worth noting that in july investors had approved a move to raise and additional GBP 2.5 million through the placing of new shares. The group has also decided to create a separate corporate entity- Mothercare Global Brand which will be responsible for developing the Mothercare strategy, increasing the value of the global brand and designing own-brand products as well as acting as the custodians of the brand. The UK business will operate with the discipline of one of the international franchises with the autonomy to focus its offer on an in-depth specialist knowledge of its domestic market.
In a statement by the spokesperson of Mothercare, the group said it had been communicating with the staff regarding the next stage of Mothercare’s transformation to a sustainable global brand.
The group added that, “These entities will be supported by more efficient and effective central business services from our Head Office. This move will result in about 200 redundancies across its current head office structure whereas 50 new roles will be created. They will be supporting the employees throughout the consultation process.”
