Saturday, 20 October 2018
Latest news
Main » UK's Mothercare to close 50 more stores in restructuring plan

UK's Mothercare to close 50 more stores in restructuring plan

17 May 2018

The firm is finalising a rescue deal after years of falling sales and profits on the struggling high street and is set to make a full announcement tomorrow.

Newton-Jones's miraculous return follows the departure of former chairman Alan Parker, who announced that he was stepping down in mid-April.

The chain has 137 shops in the United Kingdom, so more than a third would be closed.

KPMG is likely to oversee the reorganisation which will involve Company Voluntary Arrangement (CVA).

Since January, Toys R Us and Maplin have filed for administration while fashion retailers such as New Look and Select have embarked on radical store closure programmes.

It is not clear which Mothercare stores are under threat from its restructure plans, which includes a refinancing package worth £113.5 million.

In addition to the proposed equity issue the firm has also secured revised committed debt facilities of £67.5 million, £8 million of new shareholder loans and a new debtor backed facility of up to £10 million from a trade partner.

Mothercare's sales and profit have been hammered by intense competition from supermarket groups and online retailers in its main United Kingdom market as well as by rising costs.

Looking at retail sales over the three months to April, the BRC said overall spending was up 0.4 percent year-on-year, marking the third-worst reading since the global financial crisis.

UK's Mothercare to close 50 more stores in restructuring plan