Mothercare will now proceed with the closing of 50 of its under-performing stores as part of its newly approved CVA. The closures will result in the loss of around 800 jobs. The retailer has secured a refinancing package which, it says, will move the business onto a firmer footing.
Meanwhile former CEO Mark Newton-Jones has been reinstated and his replacement David Wood has taken the role of managing director.
Chairman Clive Whiley 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.” Adding: “These measures provide a solid platform from which to reposition the group and begin to focus on growth, both in the UK and internationally.”
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