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Published
Jul 26, 2018
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Mothercare plans new marketing to boost turnaround, completes refinancing

Published
Jul 26, 2018

Struggling mother and baby products retailer Mothercare is reportedly planning a new marketing push as it works to revive its business in the face of a CVA that will see a large number of store closures and job losses.


Mothercare



It is believed to have invited a number of different creative agencies to pitch for its UK advertising account, according to a report in Campaign. The retailer has not commented on the story.

And the pitch process comes in what could be the most crucial period in the chain’s history. The company now has to get out a new message, not just about its products, but that also puts across a picture of a brand in good health, despite the tough market for its sector.

And it’s interesting that David Wood, the former Tesco exec who was parachuted in as CEO to replace Mark Newton-Jones in April, but was quickly moved to another post when his predecessor returned, is running the pitch.

Wood is now Group Managing Director and has kept a relatively low profile (to the outside world, at least) in recent months. But a source told Campaign that he will have the key role in reviewing the pitches, which are due in by early August.

Mothercare doesn’t have a specific agency at the moment and last worked with St Luke's on a project basis, that agency having been hired in 2015 originally.

Meanwhile, the company also said Thursday that it has completed its refinancing. Clive Whiley, Interim Executive Chairman, said: “Earlier this year Mothercare faced a bleak future with growing financial stress upon the business and in May, we announced a series of measures to refinance and restructure the business. We have today completed the refinancing of the group.”

But he added that “we cannot be complacent as refinancing the business is just the first step of building a solid foundation for the future of the Mothercare brand. There remains much to do both in the UK and in the global operations of the business. Conditions in the retail sector remain challenging and we know we must adapt with pace as we move forward. 

“The whole team is focused on getting Mothercare, the global brand, back to where it should be as a fit for purpose business with a stronger, stable and more efficient structure both here in the UK and within our International operations.”

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