Mothercare's UK future under review

Ailing retailer Mothercare has put its entire UK business under review after revealing half-year losses of more than £80m (€93.4bn) today.

The group, which has 353 UK stores and 969 overseas, has already announced it is cutting 110 UK stores but said it will look to adjust the size and shape of its business in line with current conditions.

No further store closures are currently planned but executive chairman Alan Parker, who is running the company following last month’s exit of chief executive Ben Gordon, said “nothing was ruled in or ruled out”.

A dire trading performance and the lower value of the Early Learning Centre on the company’s books dragged it to a loss of £81.4m (€95m) in the 28 weeks to October 8, compared with profits of £300,000 (€350,200) the previous year.

Like-for-like sales in its stores in the UK slumped 7% over the half-year as consumers slashed spending on more expensive items. It expects more “difficult” trading conditions over the key Christmas trading period.

Ben Hunt, analyst at Oriel Securities, said last week the company should consider winding down the UK arm completely.

He said: “Closing the UK business may seem like a radical idea, but people clearly fear the loss-making UK business will continue to be a burden on the company.”