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// Mothercare warns it could run out of cash if shoppers tighten purse strings during inflation
// The retailer had to shut hundreds of stores in 2019 when it fell into administration
Mothercare has warned it could run out of cash if shoppers continue spending less money due to inflation.
The maternity retailer recently swung back into profitability which it described as a “significant improvement” for the company.
However, it warned that if “trading conditions were to deteriorate” it might run out of cash.
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Mothercare has had to shut hundreds of stores in 2019 when it fell into administration.
It is now run as a franchise business. In the UK it sells its goods, such as baby clothes, toys and bedding, through health and beauty retailer Boots.
Sales have been hit by its exit from Russia after the invasion of Ukraine.
Mothercare is planning to hire its first chief executive since January 2020, when Mark Newton-Jones stepped down.
Chairman Clive Whiley has since overseen a comprehensive restructuring.
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