THERE was an uncomfortable sense of déjà vu when Mothercare’s chairman Alan Parker announced an overhaul of the troubled baby goods chain’s UK arm last month.
Almost a decade after Ben Gordon parachuted in to rescue the firm from collapse, expanding Mothercare’s presence overseas and restoring confidence in the brand, problems at the heart of its UK business are resurfacing.
Now after reporting a string of profit warnings and a steep losses for the last half-year, the question is whether Mothercare’s troubles are part of a long legacy or if it is just another victim of the current retail gloom. The answer will most likely lie in Parker’s structural review of its UK stores.
Despite planned work on its UK portfolio, analysts expect losses to drag on for four years. Mothercare investors may be holding their breath for some time yet.