KPMG to Assess Options for Embattled Retail Giant’s Future

  • Mothercare appoints KPMG as advisers
  • Considering shifting UK business into an independent franchise model
  • Assessing options including CVA and outright sale of the business

Retail giant Mothercare has turned to ‘Big Four’ accountancy firm KPMG for assistance in evaluating its options for its struggling UK business. The company aims to transform and optimize the operations by shifting them into an independent franchise model, similar to its international structure. KPMG is also examining potential contingency plans such as a Company Voluntary Agreement (CVA) and outright sale of the business. Mothercare reported losses before tax of £87.3m for the year ending 30 March 2019.

Factuality Level: 8
Factuality Justification: The article provides accurate information about Mothercare appointing KPMG as advisers and their potential plans to shift its UK business into a franchise model or consider other options such as CVA or sale. It also mentions the previous losses of the company. However, it lacks some details on the specific reasons for these decisions and could provide more context about Mothercare’s situation.
Noise Level: 3
Noise Justification: The article provides relevant information about Mothercare’s decision to appoint KPMG as advisers and their potential plans for the business, including a possible shift to an independent franchise model or a CVA. It also mentions the company’s previous losses. While it doesn’t delve into in-depth analysis or provide actionable insights, it is informative without being filled with noise or irrelevant information.
Financial Relevance: Yes
Financial Markets Impacted: Mothercare’s stock price and other retail companies in similar situations
Financial Rating Justification: The article discusses Mothercare’s financial performance, its plans to shift the UK side of the business into an independent franchise model, and potential contingency plans including a CVA or sale, which directly impact the company’s financial situation and could have implications for other retail companies facing similar challenges.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text, but the company is facing financial difficulties.

Reported publicly: www.retailsector.co.uk