Mothercare calls in KPMG advisers

Maternity and babywear retailer Mothercare has called in advisors from accountancy firm KPMG to discuss possible options for the struggling business.

Mothercare reported a £36.3million loss last year, with an 8.9% fall in like-for-like sales and The move has raised concerns about the future of all 2,500 employees across 79 stores.

Potential contingency plans could include a potential second CVA, corporate restructuring or a sale of the business are all possibilities, according to The Times. Mothercare’s previous CVA, which took place earlier this year, saw KPMG closing 55 stores across the UK.

Chief executive Mark Newton-Jones has previously stated that he is looking to convert the UK operation into a franchise that emulates its more successful international business model.

“Our immediate priority is to complete the transformation of the business with a near-term focus on evolving and optimising the ownership, structure and model for our UK retail operations as an independent franchise,” he commented earlier this year.

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