Mothercare warns of highly uncertain future as Middle East franchise partner plans to close most stores

Mothercare, a London-listed baby products company, has warned of a 'highly uncertain' future after its main Middle Eastern franchise partner announced plans to close most of its stores next year. The company has launched an urgent strategic review, stating it has enough resources to trade for only a few months. This follows a previous warning of 'material uncertainty' and a sales plunge of over 40% in the year to March 28, driven by the Iran war and the end of its UK supply deal with Boots. The franchise closures will significantly reduce revenues and profits.