The retailer has warned that it could run out of cash if shoppers cut back spending due to the cost of living.
Mothercare recently reported a return to profitability, due to its global franchising business, which saw the company make £12 million in profit over the past year. However this week, the retailer has warned that it may run out of cash if ‘trading conditions were to deteriorate’ beyond its worst forecasts.
If that were the case, there would be significant doubt over its ability to continue trading without new financing arrangements of debt waivers.