The retailer's chairman says it has 'stabilised' thanks to downsizing efforts and falling debts.

14:33, Tue, Dec 23, 2025 Updated: 14:35, Tue, Dec 23, 2025

People out and about in the Shrewsbury town centre high street shopping area along Pride Hill on 29th October 2025 in Shrewsbury, United Kingdom

Mothercare says it wants to rebuild its presence in the UK (Image: Getty)

A baby products retailer has said it is looking to rebuild its presence in the UK and worldwide despite posting further losses after seeing half-year sales tumble. Mothercare, which sells its ranges through franchised stores across the globe, reported pre-tax losses of £1.4million for the six months to September 27, against losses of £1.8m a year ago.

Sales by franchise partners slumped 25% to £90.7m, or 22% lower on a constant currency basis, as trading was knocked by store closures in the Middle East and the imminent ending of its exclusive tie-up with high street giant, Boots, in the UK.

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A Mothercare branch in Cardiff

Mothercare is also looking to India to fuel growth (Image: Getty)

Underlying earnings more than halved to £800,000 in the first half for the AIM-listed firm, down from £1.7m a year earlier.

Chairman Clive Whiley said despite the trading pressures, the firm had "stabilised" thanks to moves to downsize the business and cut its debts. These fell to £5.8m from £17.1m in September last year.

He said: "From this position of relative strength our key focus for 2026 is to pursue options to rebuild our scale and operations both in the UK and globally, alongside pursuing the refinancing of our existing debt financing facilities."

The group also confirmed it is mulling its refinancing options after breaching the terms of a key lending agreement. It said this meant a loan with its main lender was now repayable on demand.

Mothercare said: "The group continues to benefit from the ongoing support of its lender and we have regular and positive discussions with them. We continue to have sufficient cash to trade for the foreseeable future."

Mothercare has been working on a transformation plan for a number of years, with the company looking to India to boost growth.

As part of the group's overhaul, it struck a £30m joint venture deal with Reliance Brands UK in October last year across South Asia and a licence agreement for Turkey with Ebebek.

Mr Whiley said these deals were "now bearing fruit". But the firm is still looking for a new chief executive.

Day-to-day management of the company is being run by the chief financial officer and the wider operating board, with oversight from Mr Whiley.

He said: "We continue to anticipate the search for a new chief executive officer to be fulfilled as a natural consequence of the multiple strategic discussions currently in train."

Shares in the retailer dropped 10 percent on Tuesday after the group posted its trading update and reported breaching an emergency loan agreement.

Mothercare was due to repay an £8m loan from lenders, Gordon Brothers, in October next year.