Businesses that are stuck in the past will continue to struggle and may eventually fail. This has been the story of several companies in recent times. BHS was an example.
Now, Mothercare is struggling to turn around a £73 million loss with a restructuring that includes a discounted equity issue to raise £32.5 million. As part of the restructuring, the company is to close 60 shops with the loss of about 1,000 jobs.
Mothercare was founded in 1961. It is one of the biggest maternity and children’s retailers in Britain. The company has struggled in recent years, weighed down by expensive leases, rising costs, fewer shoppers visiting high streets, a volatile overseas division and an online business that has not kept pace with its rivals.
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