Retail billionaire Mike Ashley, the founder of Sports Direct, has demanded new rent deals are tied to sales across his store empire that now includes HoF and Jack Wills as well as Sports Direct and Flannels.
In the same week as Mothercare threw in the towel with its UK stores, rival mother and baby products chain Mamas & Papas has opted for a pre-pack administration with its existing owner back in control.
Investors seem to approve of Mothercare throwing in the towel with its UK retail operation, despite the large loss of jobs that it will involve, suggesting that they believe the company can thrive without those stores.
It looks like there could be big change ahead at struggling retailer Mothercare. The company's recovery isn’t happening as fast as it had expected and it seems that its UK business is moving to a franchise model