750 job to go at Mothercare as firm hit by £103m loss

Mothercare revealed losses of £103 million today as the troubled high street giant said it was forging ahead with plans to shut more than 100 stores and shed 730 jobs.

A fall in its annual sales of 6.2 per cent and a big fall in the value of the group's Early Learning Centre, coupled with £10 million of restructuring costs, trigged today's big losses.

New boss Simon Calver, who joined at the end of April from internet firm Lovefilm, said he would be "ruthless" on costs as he rolled out a three-year turnaround plan.

He said today: "We have a long way to go, and the plan to bring the UK business back to acceptable levels of profitability will take three years."

Mothercare's plan to cut stores from 311 to 200 will leave it with 95 out-of-town sites and 105 profitable high street locations.

It currently has branches at the Merry Hill centre, Wolverhampton's Mander Centre, the Crown Wharf Shopping Centre in Walsall, the Queensville Retail Park, Stafford, and Birmingham.

Mothercare has not yet said which stores it aims to close.

Mr Calver is likely to bring his online experience to the business after Mothercare launched its new UK website on May 1.

Its worldwide annual sales grew by 6.4 per cent to £1.2 billion.

In the UK, Mothercare expects the consumer environment to remain difficult and reassured that it is "planning accordingly".

Mothercare was traditionally the essential store for new parents, but has suffered from competition from supermarkets and the internet.