Nov 22, 2018
Mothercare sales hit by ‘negative press coverage’
Struggling children's goods retailer Mothercare on Thursday said negative press coverage in the last year had damaged its brand, causing sales in the UK to decline. Negative coverage alongside moves to refinance the group, a deal with its creditors announced earlier in the year and a challenging retail environment pushed down the sales performance of its core British business, the company said. Like-for-like sales fell 11 per cent, reflecting a 14 per cent decrease of sales in store and a 7.8 per cent decline in online sales. International reported sales also fell 10.6 per cent, but the company said they had risen 2 per cent in constant currency terms thanks to growth in Russia, China and Indonesia. Mothercare is in the process of closing more than a third of its stores as part of a "Company voluntary arrangement" - a restructuring deal designed to keep businesses out of formal insolvency proceedings and allow time to negotiate store closures and rent reductions with landlords - a move the company said would affect 800 jobs.
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