Children World which is operated by Mothercare from 21 stores, but is a separate legal entity, has not won sufficient support for the company voluntary arrangement (CVA) which had been proposed.
Meanwhile CVA proposals for Mothercare UK and Early Leaning Centre which focused on the closure of up to 50 stores and achieving rent reductions on a further 21 stores received sufficient support to be approved by creditors of the retailer on 1st June.
A statement from the Company said: “After a rigorous post-meeting review of the voting documentation in relation to Mothercare’s non-core subsidiary Childrens World, the independent CVA nominees have concluded that the proposals failed to be approved by the necessary 75 per cent of unsecured creditors, by a very narrow margin at 73.3 per cent.”
Mothercare interim executive chairman Clive Whiley said “As a board we are considering our next steps with respect to Childrens World.”
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