Mothercare to close 60 stores as part of a rescue plan + Rent cuts in another 21 stores

SuperEd 10
Found 17th May
Update 09/07 , Mothercare will now close 60 stores, 10 more than previously planned, so now approx 900 jobs in total will now be going

The company has not yet given details about which stores will close as it is talking to the staff affected.

Mothercare also confirmed that it would be raising another £32.5m from its existing shareholders by issuing new shares.

bbc.co.uk/new…080



Tough time for retail at the moment as Mothercare set to close 50 Stores with a up to 800 jobs being lost

''The baby products retailer, which said it was in a "perilous" financial position, has also agreed a rent cut with landlords for 21 of its stores.

The store closures will leave it with 78 UK outlets by 2020.

The company also said it would reappoint the chief executive who left in April following poor Christmas trading and a profits warning.

Mark Newton-Jones had been replaced on 4 April after four years in charge of the retailer.

In a statement, Mothercare said: "Recent financial performance, impacted in particular by a large number of legacy loss making stores within the UK estate, has resulted in a perilous financial condition for the group."

It has already nearly halved its store numbers over the past five years. It had intended have 92 outlets by 2023, but has now accelerated its closure plans.

The plan to close stores and cut rents is being carried out through a company voluntary arrangement (CVA), which will need approval from its creditors.''

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10 Comments
I never really understood why large companies like this rent. Score another 1 for the landlord.
I'm all in on amazon and ebay so stores don't get my money any more. Its changing our cities with cafe and different type stores but many more will go over the next 10 years.
Edited by: "wayners" 17th May
It doesn’t surprise me, Mothercare is soooo expensive. Only grandparents shop there.
splatsplatsplat2 h, 11 m ago

I never really understood why large companies like this rent. Score …I never really understood why large companies like this rent. Score another 1 for the landlord.



a lot of it is because the big companies made a killing on property increases over the years and then took the profit by selling and signing up to leases on their terms. However a lot of them rent in retail parks, major shopping centres where they could never buy as well.

Landlords have a lot to answer for for the decline in the high street, they forced up rents by massive amounts, bring in charity shops which pay no rates on high rents and use these as examples of companies willing to pay the increased rents when companies took them to independent tribunals.

This one is even more strange because they have brought back their CEO after sacking him.
One of our local shopping towns (which was also home to a Mothercare until recently) South Shields has been killed of by private landlords milking tenants. They’ve pushed out the big names only to replace them with pop-up shops and charity shops probably paying less than half the rent – if that.

One example is Currys – one of their smaller shops but with a surprisingly high turnover. I was talking to one of the guys that used to work there not long ago and he said the rent was going up and up and the building was falling down. The landlord was refusing to carry out repairs so they had no option but to leave.
freakstyler51 m ago

One of our local shopping towns (which was also home to a Mothercare until …One of our local shopping towns (which was also home to a Mothercare until recently) South Shields has been killed of by private landlords milking tenants. They’ve pushed out the big names only to replace them with pop-up shops and charity shops probably paying less than half the rent – if that. One example is Currys – one of their smaller shops but with a surprisingly high turnover. I was talking to one of the guys that used to work there not long ago and he said the rent was going up and up and the building was falling down. The landlord was refusing to carry out repairs so they had no option but to leave.


Shields is dire at the minute. That's where i'm from, a lot of the shops that are open are not in great condition. There is some good things I guess but all the same sort of shop, i.e the new Home Bargains further out, the new Boyes Opening soon & B&M have moved to better premises (next to river island etc) so hopefully that will encourage some others to take a chance but the amount of empty shops now is terrible. As you say the rents are high and its just full of pop ups and charity shops. Very little left.
Not surprised at all, babies want the latest iphones these days.
Crazy.Chris12 m ago

Shields is dire at the minute. That's where i'm from, a lot of the shops …Shields is dire at the minute. That's where i'm from, a lot of the shops that are open are not in great condition. There is some good things I guess but all the same sort of shop, i.e the new Home Bargains further out, the new Boyes Opening soon & B&M have moved to better premises (next to river island etc) so hopefully that will encourage some others to take a chance but the amount of empty shops now is terrible. As you say the rents are high and its just full of pop ups and charity shops. Very little left.


The council haven't help matters with their 356 project or whatever its called, they've ruined the Market too. Its a waste of millions on a dead town centre, they would have been better off buying up all the empty shops (compulsory purchase if necessary) and offering them up at lower rates initially to big names stores. Its depressing, a charity shop mecca and when you think of what it was like even 10 years ago its sad to see the state its ended up in. I'm from Jarrow and the only reason I even go into Shields is either for banking or to have a look in the phone shops at upgrade time - everything else I can get in Jarrow which has far nicer vibe to it imho.
freakstyler2 h, 21 m ago

One of our local shopping towns (which was also home to a Mothercare until …One of our local shopping towns (which was also home to a Mothercare until recently) South Shields has been killed of by private landlords milking tenants. They’ve pushed out the big names only to replace them with pop-up shops and charity shops probably paying less than half the rent – if that. One example is Currys – one of their smaller shops but with a surprisingly high turnover. I was talking to one of the guys that used to work there not long ago and he said the rent was going up and up and the building was falling down. The landlord was refusing to carry out repairs so they had no option but to leave.



Crazy.Chris1 h, 29 m ago

Shields is dire at the minute. That's where i'm from, a lot of the shops …Shields is dire at the minute. That's where i'm from, a lot of the shops that are open are not in great condition. There is some good things I guess but all the same sort of shop, i.e the new Home Bargains further out, the new Boyes Opening soon & B&M have moved to better premises (next to river island etc) so hopefully that will encourage some others to take a chance but the amount of empty shops now is terrible. As you say the rents are high and its just full of pop ups and charity shops. Very little left.



without wanting to get this into a local thread there are lots of issues with Shields, rents are a major part of it, 25 years ago rents were upwards of £30K a year even back then, now they are low end of £20K and they still cant let them. Doesnt help the council spending millions on new bus station etc, compulsory purchasing and leaving swaths of the town empty because of it but still thinking people will pay for parking when they have other shopping centres which are free and dont get me started about the Word.
Human nature is to always pass the buck and blame someone else.

Top of the pops being private landlords at this present moment of time but there's so much more to it than rent prices when you look at why town centres have become swamped with charity shops and cafés.

Contrary to popular belief, private landlords nor local government benefit from vacant commercial properties in ghost towns.

From what I understand and have been told by people who know far more about this than me, landlords have been reducing rent prices massively both to current tenants and to prospective new ones alike but businesses are not making enough dough because the custom is not there.

The vast majority of us are to blame by the way we have changed our shopping habits. We are all making so many of our purchases from huge, medium sized and even small online retailers who can easily undercut the high street by virtue of having significantly lower overheads.

I am as guilty as the next man/woman of using retail park/high street retailers as a showroom and then heading to the interwebs to purchase whatever it was at a lower price once I've made my decision.

Many of us have become that lazy we can't even ever be bothered to buy our groceries in person any more and that's with 24 hour superstores in every town nowadays so what hope have any of the other bricks n mortar shops got?
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