Mothercare warns over solvency as franchise partner reviews stores


Mothercare warns over solvency as franchise partner reviews stores

Mothercare has begun reviewing its business model and costs after its leading Middle Eastern franchise partner indicated that most of its stores in the territory could close in 2027.

In a statement on 18 September, the company said the partner’s review was still underway. It expected a significant reduction in its FY28 order book, with corresponding falls in revenue, profit and cash flow.

Mothercare said it had resources to continue trading for several months, but warned that its longer-term solvency remained highly uncertain.

The strategic review is intended to preserve value for stakeholders.

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