It has been announced that 200 roles are to be axed from Mothercare’s Watford head office as part of a restructuring plan.
This will help with the achievement of their £19m cost-saving target.
With the roles axed, 50 new roles will be created, therefore a net loss of jobs totalling 150.
The restructuring decision creates two new corporate entities: Mothercare Global Brand which will act like a franchisee, developing the group’s strategy going forward and Mothercare Business Services, being the base for key business functions of HR, finance and IT. Roles in consultations will not be required under the new structures.
A Mothercare spokesman explained how staff have been informed about the transformation, which ensures to create a sustainable, global brand that can be a leader for parents and young children.
‘’At the core of today’s changes is a renewed focus on Mothercare as a truly global brand. As such, we are creating a Mothercare Global Brand entity, which will be responsible for developing the Mothercare strategy, maximising the value of our global brand, designing own-brand products and acting as the custodians of the brand.’’
The UK business will be operating with an international franchise, who can focus in-depth specialist knowledge of its domestic market.
Mothercare have had a troublesome year, with multiple attempts to better its fortunes. In June, creditors approved a Company Voluntary Arrangement which included 50 stores to be closed by 2020, with 21 further stores having rent reductions. In July, a refinancing deal occurred and £32.5m was invested into digital and mobile. Mark Newton-Jones, CEO, left the company in April, before returning five weeks later.
Will this restructuring be the rescue Mothercare need?