Mothercare warned of “material uncertainty” over its ability to continue trading after reporting a 42 percent drop in annual revenue.
Financial results show steep declines
For the 52 weeks to 28 March 2026, group revenue fell from £38.9 million to £22.4 million. Adjusted EBITDA contracted by 63 percent, moving from £3.5 million to £1.3 million. The firm recorded a statutory loss of £5 million, reversing a £6.2 million profit in the prior year, while net debt increased to £6.4 million from £4.5 million.
Worldwide retail sales through franchise partners declined 22 percent to £180 million. The slowdown was linked to ongoing uncertainty in Middle Eastern markets and the upcoming termination of an exclusive distribution partnership with Boots in the United Kingdom at the end of 2025.
Franchise performance and regional trends
In the first 19 weeks of FY27, franchise partners reported sales of £58.5 million, down from £68.8 million in the comparable period a year earlier. Despite the overall weakness, like‑for‑like sales outside the Middle East and the United Kingdom were positive during the same timeframe.
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The base‑case forecasts suggest sufficient cash to operate for at least the next 12 months. However, further deterioration in trading conditions or challenges in completing the financial restructuring could leave the company unable to meet liabilities without additional funding.
Mothercare’s £8.46 million loan facility, extended to December 2027, is currently in default after the firm breached financial covenants. Technically, the loan is repayable on demand, but the lender has not indicated an intention to call the debt immediately. Negotiations are under way for a new schedule for the defined‑benefit pension deficit, deferring contributions until March 2027 while a revised plan is finalized.
Chairman Clive Whiley said the recent financial performance has been resilient as the business looks to FY27, acknowledging challenges in the Middle East and the conclusion of the Boots arrangement. He added that discussions continue to rebuild scale, supported by recent refinancing efforts.
Mothercare, once a high‑street staple, closed all 79 of its UK stores after its domestic operation entered administration in 2019. Since then, it has functioned primarily as a global brand owner, relying on franchise and licensing partners to maintain market presence.
