Nursery and maternity retail group Mothercare announced its half-year results this morning (Thursday 26 November) revealing that it has secured a £19m loan to complete its ongoing transformation plan.
The results – which account for the 28-week period to 10 October 2020 – revealed that the loan, secured with Gordon Brothers Brands LLC, will be used to repay all outstanding debts.
It was also revealed that Mothercare lost £4.4m in the six month period, following a difficult year that saw company-wide plans being pushed back by the coronavirus pandemic.
Worldwide sales for the business stood at £189.2m for the same period, down by 42% on 2019 figures. Total group revenue was also down, by 57%.
The ten-year franchise agreement with Boots has also been finalised, allowing it to start selling Mothercare products in Boots stores and online from autumn 2020.
A 20-year franchise agreement Mothercare’s most significant franchise partner – the Alshaya Group – has also been secured, providing surety over the business’ largest commercial contract.
“The restructuring phase of Mothercare is now all but complete,”stated chairman Clive Whiley. “We have diligently managed our way through this period of global crisis and we emerge in better shape than we went into it.”
“With these foundations in place Mothercare can move forward again with confidence as a profitable and cash generative international franchise business both in-store and online, generating revenues through an asset-light model in the UK and some 40 international territories.”
He finished by thanking staff and stakeholders for helping the business get to this point, saying: “As a result, from today, Mothercare can look forward to a brighter and stable future once more.”