- Mothercare
- 21 September 2026 15:17:45
Source: Sharecast
In a brief update, the mother and baby specialist said it had been notified by the liquidators of Mothercare UK Limited – which entered into administration in 2019 – that the cash dividend would be paid to a wholly-owned subsidiary of the company.
Mothercare acknowledged it was a “helpful development”.
But it otherwise continued to adopt a cautious tone following last week’s shock decision by a core franchise partner to close the “substantial majority” of its stores in the Middle East.
Mothercare said the move, slated for 2027 and attributed to the outbreak of war in the region, meant a “material reduction” in its 2028 full-year order book and commensurate reduction in revenues, profits and cashflows.
It has launched a review in response, but confirmed on Monday that the £800,000 dividend “did not change the outlook for the business, nor the matters disclosed [last week]. At this stage the outcome of the review and the longer-term solvency of the company remains highly uncertain.”
The stock, which tumbled on Friday following the franchise update, was down 36% as at 1500 BST, at 0.13p. The shares have now had 80% of their value wiped out over the last five days.
After the British business was put into administration in 2019, leading to the closure of all its UK stores, Mothercare refocused on becoming a global brand owner selling through third parties. The Middle East is widely seen as its most important market.