Mothercare, the British mother and baby brand, has warned that its future is in doubt after its largest franchise partner said it planned to close most of its stores.
The company said its main Middle Eastern partner notified it on Wednesday that it was reviewing its Mothercare outlets, citing the situation in several of its franchise territories.
The review has yet to conclude, but the partner has indicated it expects to close the substantial majority of the franchised stores during 2027.
That will sharply reduce Mothercare's order book for its 2028 financial year, with a matching fall in revenues, profits and cash flows.
Mothercare no longer trades on the high street in Britain, having collapsed into administration in 2019, and now operates as a brand that licenses its name to franchise partners overseas.
The Middle East, run through its partner Alshaya, is by far its most important market, leaving the company heavily exposed to the decision.
Mothercare said it had enough money to keep trading for a number of months and had begun an immediate review of its business model and cost base.
It cautioned that the outcome of that review, and the company's longer-term solvency, remained highly uncertain.
Shares in Mothercare trade on London's junior AIM market.
Clive Whiley, chairman, said recent trading had been resilient but described the development as a heavy blow to the business and its stakeholders.
He said the company would keep pursuing talks aimed at restoring critical mass and value.
The warning marks another setback for a brand once found on high streets across Britain.
