Mothercare has secured agreement to defer £3million in pension contributions until 2026, as the struggling retailer works to ease cashflow pressures and stabilise its finances.
The company, which has been seeking to rebuild scale in the UK market, said its pension trustee had agreed to postpone all contributions due in the current financial year.
Payments will now resume from April 2026 under a new funding schedule.
Mothercare also confirmed it has breached the liquidity covenant on its £8million debt facility, meaning the loan is technically repayable on demand.
Its lender has not requested immediate repayment, and the company said it continues to trade with sufficient cash.
The group described the support from both its lender and pension trustee as “significant”, saying it will provide breathing space to explore growth options and address its pension deficit.
Once a staple of the British high street, Mothercare has been battling to rebuild since its UK retail arm collapsed in 2019, shifting to a franchise and wholesale model focused on overseas markets.
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