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Manchester Evening News
Manchester Evening News
National
Rachel Pugh

Mothercare is returning to the UK high street - but it will look completely different

Last year one of the UK's most iconic baby stores Mothercare took the heartbreaking decision to shut all 79 of its stores.

Parents up and down the country were left devastated, but made the most of the bargains in the huge closing-down sale.

Now, almost a year after the chain collapsed into administration, at a loss of 2,500 jobs, Mothercare is returning to the high street - but not as we know it.

Health and beauty retailer Boots will be selling Mothercare-branded items.

Bosses said the the new franchise arrangements would ensure a "more sustainable and less capital-intensive business model".

It will see the group's franchise partners pay for products directly to manufacturers, according to the Mirror.

The deal will see it sell Mothercare-branded clothing from this autumn and goods including pushchairs and car seats in larger stores and online.

The Boots deal had suffered a series of delays due to the coronavirus pandemic.

Bare shelves at Mothercare during closing down sale

Shares jumped in morning trading, rising as much as 18% at one stage before settling around 4% higher.

On the new franchise plans, Mothercare said: "We believe this new way of working will ultimately have the added benefits of improving pricing for franchise partners, which in turn should better incentivise retail sales growth and assist our manufacturing partners in reinstating credit insurance for future seasons."

As well as the 10-year Boots deal, Mothercare said it had also struck a new 20-year franchise arrangement with Alshaya Group, its main franchise partner.

But Mothercare added that it still expects to take a £10million hit from the UK stores administration last November.

The administration left Mothercare refocused on simply providing branded products to retailers.

In June, the group was also dealt a blow when temporary boss Glyn Hughes said he did not want the job on a permanent basis.

He quit in June, leaving Mothercare to be led by the chief operating officer and chief financial officer, under the watchful eye of chairman Clive Whiley.

Mothercare fell to a £36.3million loss last year under a controversial company voluntary arrangement (CVA) which sparked its demise.

The company appointed PricewaterhouseCoopers (PwC) to manage its stock and store count in November - and later confirmed 79 store closures and more than 2,500 job losses.

However, its overseas business continues to trade, with the company saying its 1,000 stores in 40 countries are all safe.

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