Mothercare, the leading global retailer for parents and young children, has announced its plans to restructure its UK store portfolio. These measures are expected to help the company to return to a more stable footing, accelerate the transformation of the group and drive it towards a viable and sustainable future. The plan entails closing 50 stores, which puts 800 jobs at risk.
Mothercare's refinancing will provide funding of up to €129.7m (£113.5m). The launch of the CVA Proposals is not expected to affect the ordinary course of operations of Mothercare. The process is expected to complete in July 2018.
Commenting on today's Refinancing and UK Restructuring, Clive Whiley, the Company's Interim Executive Chairman, said: "The recent financial performance of the business, impacted in particular by a large number of legacy loss-making stores within the UK estate, has resulted in an unsustainable situation for the Mothercare brand, meaning the Group was in clear need of an appropriate resolution. Since my appointment as Interim Executive Chairman, my priority has been to galvanise support from all of our stakeholders and provide a solution to the short-term problems facing the Company. These comprehensive measures provide a renewed and stable financial structure for the business and will drive a step change in Mothercare's transformation. The potential for the Mothercare brand in the UK, benefitting from a restructured store estate, and internationally remains significant. However, there remains much to do and we must maintain a disciplined focus on cost control and cash generation throughout the business, but these measures provide a solid platform from which to reposition the Group and begin to focus on growth, both in the UK and internationally."