Mothercare warns its future is 'highly uncertain' after Middle East franchise partner plans to shut most stores

From the Newshound archive · first published 19 September 2026.

Mothercare's Middle East franchise partner, Alshaya, notified the British baby brand on Wednesday that it intends to close the majority of its Mothercare outlets across the region during 2027, a decision that will devastate the company's order book. Mothercare warns that the resulting erosion of revenues, profits and cash flows will hit hardest in the 2028 financial year, and that existing funds will cover only a few months of operations. Chairman Clive Whiley called the development a "heavy blow", and the company has moved swiftly to launch a strategic review while warning that its longer-term survival remains "highly uncertain".

Mothercare collapsed into administration in Britain in 2019 and now relies entirely on overseas franchise agreements, making Alshaya by far its most critical commercial relationship.

Sales had already plunged 42% to £22.4m in the year to March 2026, producing a £4.3m pre-tax loss, as Middle East conflict and the end of its UK supply arrangement with Boots took their toll.

The company warned that the outcome of its strategic review and its long-term solvency remain 'highly uncertain'.