Mothercare closing 50 stores with up to 800 jobs lost

People walk past a Mothercare store in Altricham Britain

As part of its restructuring plan the parenting retail chain confirmed that a further 21 stores will see a rent reduction.

He added: "The potential for the Mothercare brand in the United Kingdom, benefitting from a restructured store estate, and internationally remains significant".

The company further added that the United Kingdom restructuring plan will involve an accelerated reduction of the United Kingdom store estate to reduce losses and rent liabilities and will be effected through the CVA Proposals.

Mothercare employs about 3,000 people across 137 outlets in the United Kingdom, including branches in Telford, Walsall, Stafford and at Merry Hill shopping centre.

The CVA route, which allows firms to avoid insolvency or administration, has already been taken this year by fellow United Kingdom retail laggards - fashion chain New Look, floor coverings group Carpetright and department store group House of Fraser.

Shares in Mothercare were up 4.8 pence at 26.6 pence at 0832 GMT, valuing the business at 46 million pounds.


Meanwhile, in a move that will stun many observers, Mark Newton Jones, who was given the elbow as chief executive last month, will return to the fold and once again take the top job.

The shake-up aimed at restoring the fortunes of the chain are likely to result in hundreds of job losses.

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

The latest change at the top, first reported by Sky News, will be revealed alongside details of Mothercare's substantial restructuring, which it is undertaking in a bid to avoid becoming the latest high street name to collapse into administration.

The CVA will go to a creditors' vote on 1 June.

This is made up of a proposed equity capital raising of £28m expected to be launched in July 2018, a revised committed debt facilities of £67.5m, new £8m shareholder loans from certain of the company's largest shareholders and a new debtor-backed facility of up to £10m from one of the company's trade partners.

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