Mothercare to leave Watford headquarters

First came the permanent closure of its store in the town, and now its headquarters will be departing.

The company has confirmed it is moving from its current headquarters in Cherry Tree Road, near the Dome roundabout, as part of a money-saving exercise.

Mothercare says the exit from Cherry Tree Road will save the company around £900,000 per year.

A statement published on June 22 by Mothercare said: "We have recently entered into binding terms to move to a smaller and more cost-effective head office in early August 2020.

"Terms have also been agreed for a surrender of the existing lease of the company's current head office in Watford in mid-July.

"It is anticipated that this move will reduce cash occupancy costs for our head office by approximately £900,000 per annum."

Mothercare says its temporary new headquarters will be at a business park in Surrey - and that further details on a permanent new home will be provided 'when appropriate'.

Mothercare, which went into administration in November last year and saw all of its remaining stores close in January, is also subletting part of its main warehouse in the Midlands to a third party, saving £220,000.

The collapsed retailer, which is currently searching for a permanent chief executive, is still selling its goods after the company signed an exclusive deal with Boots to make sure that its mother and baby clothes will still be sold in the UK.

When Mothercare went into administration, the company announced 384 jobs would be lost at the Watford office.

In early 2019, Mothercare sold the Cherry Tree Road office for £15 million to BYM Capital but signed a ten-year lease to remain there under the sale-and-leaseback deal.

However, that lease has now been surrendered.

Last summer, Watford Borough Council granted prior approval to turn Mothercare's HQ building into residential use - this gives the green light for a developer to turn the office into homes without the need to go through a full planning application.