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Retail

Mothercare sales still falling as debt talks continue

Floor space was reduced by almost 11% in the 12 weeks to March 24

Mothercare plc (LON:MTC) remains locked in talks with its lenders over a new finance package to keep it afloat.

In an update today, the specialist child and babycare retailer said dialogue with its financiers had been constructive and it was looking at alternative sources of funding.

READ: Mothercare might close 47 stores as it struggles to survive on the High Street

Floor space was reduced by almost 11% in the 12 weeks to March 24, slimming the estate to 137 stores.

New chief executive David Wood is reportedly planning to cut a third of the outlets after a poor Christmas sparked a funding crisis.

Trading in the 12 weeks to March 24 (fourth quarter) was in line with the reduced expectations, said Wood.

UK sales fell 5.6% (2.8% like-for-like) with a full year decline of 4.8%. International sales dropped by 11%.

In January, the company forecast an adjusted group profit for the year to March of £1mln-5mln and net debt of £50mln.

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