Shares in Mothercare have dropped by almost 68% after stating that its leading Middle East franchise partner is reviewing its stores, in light of the "ongoing situation in a number" of its territories.

The British heritage brand stated that while this review is yet to conclude, it is anticipating the closure of the "substantial majority" of its franchised stores in the region in 2027.

As a result, Mothercare said there will be a material reduction in its order book for FY28 and a "commensurate reduction in revenues, profits and cash flows".

While the firm believes it has sufficient resources to trade for a number of months, it has commenced a strategic review of its business and cost base, with the review of preserving value for stakeholders.

Mothercare stated that at this stage, the outcomes of such a review and the longer-term solvency of the company "remains highly uncertain".

Chairman at Mothercare, Clive Whiley, said: "Whilst our recent financial performance has been resilient, this is a heavy blow to the Mothercare business and our stakeholders. We will continue to pursue discussions to restore critical mass and value for stakeholders, against this more difficult backdrop."

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