500 Mothercare jobs at risk

Up to 500 jobs are at risk at struggling chain Mothercare after the mother and baby products retailer announced plans to overhaul working hours.

Loading Comments
Share
Print

The firm, which employs around 3,500 full-time UK staff in 220 stores, is in talks to cut the hours of 500 staff who work more than 24 hours a week, with workers who do not accept the change facing redundancy.

The business will also create 200 part-time jobs as part of its bid to put more staff on the shop floor at peak times such as Saturday afternoons.

Mothercare's turnaround plans were hit in February when chief executive Simon Calver resigned, six weeks after the company issued a profits warning due to poor Christmas trading in the UK.

The retailer said: "Mothercare is looking to increase the proportion of colleagues serving customers at our busiest times. As well as creating new jobs, this step will lead to changes in working practices for a number of our UK store colleagues and we are consulting with those affected."

Mothercare appointed Mark Newton-Jones, a former Shop Direct boss, as interim chief executive in March and is still looking for a full-time head.

At the group's full-year results in May it posted a 61% rise in underlying profits to £9.5 million, which includes its international business that covers 60 markets.

However, Mothercare's core UK business saw annual like-for-like sales slip 1.9% and total sales fall 7.5% to £462.3 million. The UK business reported an underlying loss of £21.5 million, compared to a loss of £21.6 million the year before.

Cantor Fitzgerald analyst Mike Dennis said the group's turnaround programme, which has been in place for two years, is running out of time.

Mr Dennis said Mothercare might have to launch a deeply discounted rights issue or set up a joint venture to inject cash into the business.

Over the last six years Mothercare's UK store base has almost halved from 405 shops to 220, according to Cantor Fitzgerald.

Business

Commenting & Moderation

We moderate all comments on Evening Times on either a pre-moderated or post-moderated basis. If you're a relatively new user then your comments will be reviewed before publication and if we know you well and trust you then your comments will be subject to moderation only if other users or the moderators believe you've broken the rules

Moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours. Please be patient if your posts are not approved instantly.

167790

Have you got a story?

Contact the news desk on 0141 302 6520 or email news@eveningtimes.co.uk
Games news:

Putting the world to rights

Gail's Gab

George Square tragedy puts life in perspective

Times Out

Entertainment

Lifestyle

TV Advert
Janice Bell

Janice Bell

You couldn’t make up half the stuff that happens to PA Janice Bell- some of the jams she gets herself into are worth a story or two.

A weekly round up of social highlights

A weekly round up of social highlights

Cat's Eyes on Glasgow

SPOTY, Cinderella at the SECC and festive things to do.

Michelle McManus

Michelle McManus

Columnist Michelle McManus is Sussed in the City, and loves to chat about anything and everything.