Mothercare has exited its lease for its headquarters in Watford, Hertfordshire, for a smaller office in Weybridge, Surrey, as part of the retailer’s transformation plan.
The retailer went into administration in November last year and announced a month later that it had signed a franchise deal with Boots. As part of the plan to turn the business around, the company announced today it would be restructuring its property portfolio.
The company has surrendered its lease for its headquarters in Watford and has moved to a “smaller and more cost-effective head office” at St George’s Business Park in Weybridge.
The move is expected to reduce costs by £900,000 per annum.
Mothercare has also sublet a “substantial part” of its Daventry warehouse, which previously served the majority of the company’s UK business, to a third party for a minimum term of four months.
This will save the business £220,000 per month.
Interim chief executive Glyn Hughes has also stepped down and will leave the business on the 30 June.
Clive Whiley, chairman of Mothercare, said that despite the widespread store closures that have occurred as a result of coronavirus disruption, stores are beginning to reopen.
“At the same time, we continue to take action to reduce our cost base and address legacy issues, helping with our return to being a profitable and sustainable business,” he added.
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