Mothercare to close 111 more stores in Britain

PanARMENIAN.Net - Mothercare, the ailing mother-and-baby chain, said it would close a further 111 stores in Britain, putting around 750 jobs at risk, according to The Telegraph.

The retailer announced the closures in its fourth quarter update which showed a sharp drop in trading in its home market, with sales at UK stores open for a year or more sliding 8.2pc in the final three months of 2011.

Last year Mothercare unveiled plans to close about 110 stores over two years as leases expire. However, it said on Thursday, April 12 that after trimming its total UK store base to 311 it planned to close another 111 stores over the next three years to focus on 200 profitable outlets - 95 out of town stores and 105 key high street stores.

In Britain the company faces intense competition from supermarkets and internet players and cash-strapped consumers and last issued three profits warning.

The company expects the closures to improve UK profits by about £13m by March 2015, with savings in non-store overheads of at least £20m on an annualized basis.

Mothercare, which has agreed a refinancing of its banking facilities with its lenders, said the store closures and savings would cost £35m.