Mothercare Faces Significant Franchise Store Closures

Mothercare plc, the British heritage brand known for connecting with parents of newborns and children, has announced a significant financial outlook update. The company was informed by its leading Middle Eastern franchise partner on September 17, 2026, that the partner is reviewing its Mothercare franchise stores in several territories due to ongoing issues. The review is expected to result in the closure of the substantial majority of franchised stores in the region in 2027.

This development will lead to a material reduction in Mothercare’s order book for fiscal year 2028, resulting in a corresponding decrease in revenues, profits, and cash flows. The company has sufficient resources to continue operations for several months and has initiated a strategic review of its business model and cost base to preserve value for stakeholders.

Clive Whiley, Chairman of Mothercare, commented, "Our recent financial performance has been resilient, but this news is a significant challenge for the Mothercare business and our stakeholders. We will continue to pursue discussions to restore critical mass and value for stakeholders."

According to the release, Mothercare has sufficient resources to trade for a number of months and is actively working on a strategic review to mitigate the impact of the franchise store closures. The outcome of this review and the company's longer-term solvency remain highly uncertain.

Andrew Cook, the Company's Chief Financial Officer, stated, "We are committed to exploring all options to ensure the continued success of Mothercare. The review process is ongoing, and we will keep our stakeholders informed of any developments."

Mothercare's strategic review is expected to address the financial implications of the franchise store closures and explore potential solutions to maintain the company's position in the market. The company will continue to engage with its stakeholders to navigate this challenging period.

Clive Whiley, Chairman Andrew Cook, Chief Financial Officer Deutsche Numis Tel: 020 7260 1000 (NOMAD & Joint Corporate Broker) Luke Bordewich Cavendish Capital Markets Limited Tel: 020 7220 0500 (Joint Corporate Broker) Matt Goode

The release also notes that the information contained in this announcement is inside information for the purposes of Article 7 of the UK version of Regulation (EU) No. 596/2014, which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended (the Market Abuse Regulation ("MAR")). Upon the publication of this announcement, such information will no longer constitute inside information. Andrew Cook, the Company's CFO, is the person responsible for making the notification for the purposes of Article 17 of MAR.