New Mothercare boss David Wood hunts for emergency cash

The new boss of baby clothes and prams seller Mothercare on Thursday said he will continue to seek emergency cash as its sales falter.

David Wood, brought in last week after the chief executive of four years Mark Newton-Jones was ousted, admitted it will have to beef up its financials “immediately” if it is to continue trading.

He said: “My priority is to ensure Mothercare is put back on a sound financial footing and to improve its financial performance.”

It is one of a string of struggling retailers on the High Street to be hit by a squeeze on consumers and changing shopping habits.

Its same-store sales dropped 2.8% for the 12 weeks to March 24 as fewer shoppers visited its stores. International retail sales also fell by 3.7%. However, its online sales were up 2.1%.

Last month Mothercare warned profits will be at the lower end of its forecast between £1 million and £5 million and it was going to breach its bank covenants. The retailer plans to slash its store portfolio to 80 from 140.

Newton-Jones’s sudden exit was orchestrated by the board, which grew frustrated with the speed of his turnaround. The chain, which sells clothing by singer Myleene Klass, has seen its share price drop from 245p in 2014 to 17.08p today.

Clive Black of Shore Capital said today’s statement “provides welcome reassurance after a challenging time”.