Warehouse blow for Mothercare

BABY ware retailer Mothercare is in hot water again. The shares slumped 14 1/2p to 105p as it admitted that its Daventry warehouse is still having teething problems.

The firm, which ousted chief executive Chris Martin last month, has been forced to stop collecting stock from some suppliers to avoid a warehouse logjam.

It refused to say how many orders were affected, but insists the new autumn clothes range will be in the stores as planned. 'It is a short term problem - things will get back to normal over the next few days. We needed to prioritise what went into the warehouse,' said the company.

Investors, who watched shares tumble nearly 70% in 12 months, will wonder whether things can get any worse. After a raft of profits warnings, it is difficult to have faith in the recovery. Last month management implied the warehouse problems had been overcome, but this is clearly not the case. Pray for a takeover bid.