Mothercare chief executive steps down in wider board reshuffle

In an update to the City this morning, it was announced that Mothercare chief executive Mark Newton-Jones would “step down” from the role effective immediately and be replaced in an interim capacity by current chief financial officer Glyn Hughes.

The retailer, which appointed administrators for its UK business in early November, said Newton-Jones would remain as an executive director with the business through to July, before becoming a non-executive director thereafter.

Mothercare also confirmed the appointment of Clive Whiley as its new non-executive chair. He will take up his new role on March 29.

With Hughes becoming interim chief executive, he is set to be replaced as chief financial officer by Andrew Cook, who joined the business in April last year as corporate development director.

The retailer said it didn’t raise as much as it had hoped through a stock clearance after closing its UK stores this month, leaving it to make up a £10m shortfall to lenders.

The new chair said the changes were part of its strategy to establish Mothercare as an “international franchise brand”. 

Whiley said: “The board changes announced today align the management of Mothercare with that of its new structure as an international franchise brand and will contribute to a further overhead reduction. In time we plan to add relevant skills and expertise – particularly in brand and product management – to the team to accelerate our development as an international brand owner and operator.

“Finally I would like to thank Mark for his contribution to the business over what has proved to be a turbulent period and I am delighted that we will be able to call upon his retail experience as we go forward.”

The board reshuffle comes as the retailer Mothercare hailed the “significant progress” being made with its transformation plan, 12 weeks since it began winding up its UK arm.

Mothercare said it was on track to finalise the UK franchise arrangements outlined with Boots UK in December and expected the initial agreement to run for five years.

The group also confirmed it has completed the process of raising £8.7m from investors and reduced its debt through the administration of Mothercare UK, and had also extended or agreed £20m in new equity from Numis, a £15m temporary increase from a trade partner and was in discussions over new debt facilities.