Destination Maternity is fighting for survival. It plans to close about 50 stores over the next six months. Destination Maternity’s revenues already are declining — net sales for the fiscal year’s first half are down 10.3 per cent from the same period in fiscal 2018. Comparable sales, those in stores open during both periods, fell 8.7 per cent from a year ago. The company had 937 retail sites at the end of its latest quarter. That compares to 1,114 a year earlier and 1,220 in January 2017. Destination Maternity is working with advisors to explore financial and strategic alternatives, including the possible sale of the business or some of its assets. The firm this summer slashed its workforce to cut costs. A default on loans could result in the company needing to seek bankruptcy protection to protect stakeholder value.
Destination Maternity, based in the US, runs the brands Motherhood Maternity, A Pea in the Pod and Destination Maternity. In addition to its retail locations in the United States, Canada and Puerto Rico, it also sells its products through franchise agreements in South Korea, Mexico, Israel and India.
Maternity wear has become trendy, stylish, form-fitting, and designed to highlight a woman’s curves during pregnancy. The Asia-Pacific region is showing the strongest growth.
