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By
Reuters API
Published
Oct 31, 2018
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Mothercare cuts 200 jobs in cost-cutting drive

By
Reuters API
Published
Oct 31, 2018

British-based mother and baby products chain Mothercare Plc told about 200 employees their jobs would be terminated as part of a restructuring, Sky News reported on Wednesday.




Net job losses are expected to total roughly 150, with 50 new roles being created in the reorganisation, the report said.

The move, Sky News said, was part of Mothercare's efforts to meet a 19 million pounds cost-savings target outlined in a rescue plan struck with creditors earlier this year.

The struggling Watford, UK-based retailer announced plans in May to seek creditor approval for so-called company voluntary arrangement proposals that would enable it to shut 50 stores and secure rent reductions on 21 others.

The company's sales and profit have been hammered by intense competition from supermarket groups and online retailers in its main UK market as well as by rising costs.

Mothercare, which had over 4,700 employees according to its latest annual report, did not immediately respond to Reuters' request for comment.


 

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