| Mothercare plc | |
| Type: | Public |
| Predecessor: | Storehouse plc |
| Founders: | Selim Zilkha James Goldsmith |
| Defunct: | (United Kingdom) (Ireland) (Germany) (Russia) (Poland) (The Netherlands) |
| Location: | Cherry Tree Road, Watford, Hertfordshire |
| Key People: | Clive Whiley (chairman) |
| Industry: | Retail |
| Products: | Baby products |
| Revenue: | £513.8 million |
| Revenue Year: | 2019 |
| Operating Income: | −£18.4 million |
| Income Year: | 2019 |
| Net Income: | −£66.6 million |
| Net Income Year: | 2019 |
| Num Employees: | 3,752 |
| Num Employees Year: | 2019 |
| Locations: | 1,227 (franchisees) |
| Num Locations Year: | 2019 |
| Area Served: | Worldwide |
| Subsid: | Mothercare UK Limited (in administration) |
Mothercare plc was a British retailer that specialised in products for expectant mothers and in general merchandise for children up to eight years of age. It was listed on the London Stock Exchange and was a constituent of the FTSE SmallCap Index.
Mothercare's United Kingdom subsidiary had over 150 stores in 2017, but by 2019 the number had been reduced to 79. In November 2019, the subsidiary was placed into administration, which led to closure of all the stores, continuing as a franchise-only business. Mothercare-branded products are sold in the UK by Boots, and Mothercare continues to supply franchisees in other countries.[1]
The company was founded by Selim Zilkha and Sir James Goldsmith in 1961.[2] It was first listed on the London Stock Exchange in 1972.[2]
In 1982, the company merged with Habitat[2] to form Habitat Mothercare plc. In 1986, Habitat Mothercare plc merged with British Home Stores, to form Storehouse plc.[2] In January 1996, it bought Children's World from Boots,[3] and rebranded these stores as Mothercare World. In May 2000, the Bhs stores were sold to Philip Green,[3] and Storehouse reverted to the Mothercare brand.[3]
In June 2007, Mothercare bought Early Learning Centre (ELC) for £85 million.[4] In October 2007, it launched Gurgle, a pregnancy and parenting social networking website.[5] In November 2009, Mothercare acquired the 50% of Gurgle that it did not already own.[6]
In July 2010, Mothercare bought the trademark and brand of Blooming Marvellous, a privately owned rival.[7]
In May 2018, it was confirmed that Mothercare would close 50 stores in the United Kingdom under company voluntary arrangement schemes affecting three subsidiaries: Mothercare UK Limited, Early Learning Centre Limited and Childrens World Limited.[8] The Early Learning Centre business – which operated in 80 UK stores and 400 overseas franchises – was sold to the Entertainer group in March 2019.[9]
During the 2019 financial year, the company's Watford headquarters was sold in a leaseback transaction which raised £14.5M. In July 2019, the company said it was planning to spin off its UK retail business due to decreased sales. The company reported that UK store sales had fallen by 23.2%, while online sales in the UK were down by 12.1%. The company recorded a worldwide sales drop of 9.4%.[10]
In November 2019, the company put Mothercare UK (and Mothercare Business Services) into administration;[11] all the UK shops and the UK website closed soon after.
The company operated online, on high streets and in out-of-town retail parks. In November 2009 it had over 1,060 stores worldwide, of which 389 were in the United Kingdom, and 671 were in 38 other countries.[12]
In January 2019, Mothercare announced that its store closure programme was ahead of schedule and the group was on course to have 79 shops by the end of March 2019.[13]
Following the closure of the UK business, from mid-2020 some Mothercare-branded products were to be sold by Boots, both online and in stores.[14]
In September 2014, Mothercare made a nine-for-ten rights issue at 125p per share, a discount of 34.2 per cent to the then current share price, in order to raise £95m net of expenses, to be used to pay off £40 million in loans.[15] By March 2018, Mothercare were in talks with the banks to waive their covenants, causing the company's share price to fall by one third to 22 pence per share, and had a pension shortfall of £80m.[16]
On 4 November 2019, Mothercare announced it was appointing administrators for its UK operations of 79 stores, placing 2,500 jobs at risk. The company, which suffered a loss of £36.3m during 2018–19, stated the decision came after a review made clear that the business would not return to profitability.[17] On 5 November, it was announced by the administrators that there would be a phased closure of all UK stores and its headquarters.[18]
In 1983, M.H. Alshaya Co. began its first franchise operation with the Mothercare brand in Kuwait, which was also its first international store. Alshaya operates Mothercare franchises[19] in the Middle East, North Africa, central and eastern Europe and Russia.[20]
In Singapore, the Mothercare brand is represented by Kim Hin International Pte. Ltd. which began in 1984[21] by its founder and current chairman, Pang Kim Hin.[22]
The British retailer Poundland planned to open a store in Biggleswade, dubbed "Motherland", the logo featured a similar logo to Mothercare's. On 9 February 2023, Mothercare sent a cease and desist to the discount retailer, the store was renamed to "Parentland" and now uses the same font as the Poundland logo.[23]