Mothercare ‘lingers in uncertainty’ as online sales slump after closing ALL 79 UK stores

MOTHERCARE has warned it faces “material uncertainty” for its future amid plunging sales. The company said revenue had been impacted by several factors, including instability in the Middle East and the end of its supply deal with high-street chain Boots. Mothercare has revealed tumbling revenue and sales in a new financial report Credit: PA:Press Association Its latest reports show revenue tumbled to £22.4million for the year to March 28 2026, down 42 per cent from the previous year. The company has also undergone a pre-tax loss of £4.3million, compared to a profit of £11.9million in the previous year. Sign up for the Money newsletter Thank you! Earnings before interest, taxes, depreciation, and amortisation fell to £1.3million, which was 63% lower than the previous year at £3.5million. Following a £6.2million statutory profit in the previous period, Mothercare has now moved to a £5million statutory loss, with its net debt growing to £6.4million. It comes as worldwide retail sales by the company’s franchise partners were also down. Mothercare attributed this decline to challenging trading conditions, including the termination of its UK partnership with Boots and the ongoing conflict in the Middle East. The pharmacy and beauty chain opened a number of Mothercare concessions within its stores back in 2020, but this partnership came to an end last year. The beginning of the current financial year has continued to see the effects of these factors, with current worldwide retail sales of £58.5million, down from £68.6million in the previous year. Most read in Money However, Mothercare said that retail sales outside of the UK and Middle East have seen increases. The London-listed company has stressed that it believes it has “sufficient cash” to operate for the next 12 months, via a refinancing of £10million of debt. However, its latest annual accounts have shown that the company would “have insufficient cash” at a certain point in time if “trading conditions were to deteriorate” or if it was unable to improve its cost and cash management sufficiently. If this were to happen, the company may be required to secure additional funding to meet its liabilities. As a result, auditors found there is “a material uncertainty that casts significant doubt that the group will be able to operate as a going concern”, without finding new funds. Chairman of Mothercare, Clive Whiley, said: “The recent financial performance has been resilient as we look to [fiscal 2027], acknowledging the ongoing situation in the Middle East and the end of our arrangement with Boots in the UK alongside our progress in other markets. “We remain in discussions to restore critical mass, a process greatly assisted by our successful refinancing and better alignment of the first-charge debt instrument with our equity.” Comment now