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By
Reuters API
Published
Oct 31, 2018
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Mothercare to cut 200 jobs in restructuring

By
Reuters API
Published
Oct 31, 2018

Mother and baby products chain Mothercare Plc has told about 200 employees their jobs will be terminated as part of a restructuring, the struggling British-based retailer said on Wednesday.



The job cuts will affect Mothercare’s head office and the reorganisation will create 50 new roles, a spokesman said in a statement.

The move was part of Mothercare’s efforts to meet a 19 million pounds cost-savings target outlined in a rescue plan struck with creditors earlier this year, Sky News reported earlier on Wednesday.

The Watford, UK-based retailer announced plans in May to seek creditor approval for so-called company voluntary arrangement proposals that would enable it to shut 50 stores and secure rent reductions on 21 others.

The company’s sales and profit have been hammered by intense competition from supermarket groups and online retailers in its main UK market as well as by rising costs.

Mothercare had over 4,700 employees according to its latest annual report.

 

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