UK retailer Mothercare said it would close more UK stores as it seeks to restore profitability in its home market.
The company's sales there slumped in the fourth quarter.
It launched a strategic review of its UK business last year and said in May it planned to close about 110 stores over two years as leases expire.
It said today it would reshape its UK business to a profitable core of 200 stores.
Having closed 62 stores in its 2011-12 year it will now close 111 stores over the next three years to March 2015. The firm forecast the closures would improve UK profits by about £13m sterling by March 2015.
Mothercare said it has also identified savings in non-store overhead costs of at least £20m on an annualised basis by March 2015. It said the store closures and cost savings will require an investment of £35m. A refinancing of its banking facilities has been agreed.
The firm said it would accelerate its international expansion. Mothercare said UK sales tumbled in its fourth quarter, offsetting strong growth overseas.
The group, which issued three profit warnings last year and parted company with its chief executive, said sales at UK stores open over a year fell 8.2% in the 12 weeks to March 31. That compares with a fall of 3% in the third quarter. International retail sales rose 18%.
The firm said it would meet expectations for full year pretax profit. Mothercare is battling intense competition in Britain from supermarkets and internet players as well as a weak consumer environment.
It has recruited Simon Calver, formerly the head of Amazon's, LOVEfiLM International unit, to become its new chief executive. He starts on April 30. Mothercare shares have lost 60% of their value over the last year.
Today's news does not affect Mothercare stores in Ireland. Mothercare Ireland is a wholly-owned Irish company employing 350 people in Ireland and is a franchise of Mothercare International. It has 23 stores nationwide.
The company has traded profitably for the last 19 years and its results are totally independent of the Mothercare UK business.
