Analysts suspect that the relegation will see a further negative effect on share prices following the 48% share price drop it has already seen. The retailer is currently undergoing a restructuring that will see the loss of around 800 jobs and 21 stores obtaining a rent reduction.
Clive Whiley, the company’s then interim executive chairman, said at the time: “The recent financial performance of the business, impacted in particular by a large number of legacy loss making stores within the UK estate, has resulted in an unsustainable situation for the Mothercare brand, meaning the group was in clear need of an appropriate resolution.
“Since my appointment as interim executive chairman, my priority has been to galvanise support from all of our stakeholders and provide a solution to the short-term problems facing the company.”
Since the statement Whiley has been replaced by Mark Newton-Jones who resigned just over a month before his appointment.
Newton-Jones holds 733,576 ordinary shares in Mothercare and took a £132k pay cut to rejoin the retailer.