Babycare group Mothercare has announced a new business model after talks with franchisees. It has also finalised a deal with Boots to sell goods across the chain in time for the autumn season.
Last year, Mothercare put its UK stores into administration with all 79 shops closing and 2,500 jobs lost. Its retail business in the Republic was placed into liquidation in June this year, with 14 stores closing and 197 staff made redundant. The family that owns the franchise here cited the “unprecedented” impact of Covid-19 on retail sales.
Mothercare said the new franchise arrangements would ensure a “more sustainable and less capital-intensive business model”. It will mean the group’s franchise partners pay for products directly from manufacturers.
The group added it had finally completed the deal with Boots to become its UK and Ireland franchise partner – first announced in December – which will enable it to sell Mothercare-branded clothing from this autumn and goods including pushchairs and car seats in larger stores and online.
The Boots deal had suffered delays due to the coronavirus pandemic. – PA
