Mothercare lost its way some time ago. Go into one of their shops and you really don't know what they are trying to do. Pile em high discounts all other the place, a riot of concessions (Clarks etc.) where there is space, and then the ELC part of the set up. The stores now remind me of Woolies in their death throws a few years ago.
It's a shame, yes they can't compete against Tesco/Asda for kids clothes (or much else), but there should be a nich for a more upmarket (but not exclusive) child centred all in one place shopping concept. After all John Lewis/Waitrose have shown that the middle classes are still prepared to pay a premium for quality and service even in a recession. Yet look at ELC - constantly throwing out 20% vouchers that are unusable (because they are invalid on sale goods and virtually every product is marked down), a mass of crass gender stereotype blue/pink princess plastic tat, hardly any quality/wooden/educational toys that their almost destroyed reputation was built on before the Mothercare takeover.
If however finally steps into the CEO shows addresses all that then they may just have a chance, but currently regardless of overseas expansion I wouldn't touch them (although I did used to have Mothercare shares)