Mothercare has reported a loss of nearly £90 million as its sales plunged 9% last year.
The retailer is in the middle of a major restructuring project which has seen it close a third of its stores across the UK.
Chief executive Mark Newton-Jones said the company was on a "sounder footing" following the sale of the Early Learning Centre for £11.5m and its head office in Watford for £14.5m.
The company also revealed a "fracture in the relationship" between its directors and non-executive directors.
Chairman Clive Whiley said: "We remain determined to differentiate Mothercare as a textbook recovery case, in parallel demonstrating that boards can and should foster a greater alignment between their debt and equity providers.