Mothercare to close 50 stores in rescue plan

British high street stalwart Mothercare is to shit 50 of its stores across the UK in a radical restructuring plan to save the mother and baby products retailer

British high street stalwart Mothercare is to shit 50 of its stores across the UK in a radical restructuring plan to save the mother and baby products retailer

Mothercare now trades from 137 United Kingdom stores but aims to reduce that to 78 by 2020, meaning a further nine stores would close beyond this initial programme.

The mums I met yesterday bought their baby stuff in the likes of Primark and the supermarkets.

Mark Newton-Jones will return to the retailer, less than two months after he was forced out with just a few minutes' notice, Sky News reported.

The plan to close stores and cut rents at 21 of its stores.is being carried out through a company voluntary arrangement (CVA).

He was given the boot by then-chairman Alan Parker, who has himself since stepped down. David Wood, the former Tesco executive who had replaced Newton-Jones will now become Mothercare's group managing director.

"The business was in an unsustainable situation and was in clear need of an appropriate resolution and today's comprehensive measures provide a renewed and stable financial structure for the business, and will allow Mothercare to accelerate its adaptation to the shifting dynamic towards online". It has more than 1,000 stores overseas, many of them operated as franchises.


"The recent financial performance of the business, impacted in particular by a large number of legacy loss making stores within the United Kingdom estate, has resulted in an unsustainable situation.meaning the group was in clear need of an appropriate resolution", said interim executive chairman Clive Whiley.

The high street chain made the decision due to the current poor climate for retailers that has already seen Toys R Us and Maplin close down this year.

Carpetright has entered into a CVA and announced store closures, as has fashion chain New Look.

Mothercare also plans to raise £28m from shareholders through a share placing while it has also extended £67.5m in debt facilities with lenders as well as arranging £18m in credit with investors and trade partners.

It has also had to contend with surging wage costs and eye-watering business rate hikes.

Richard Lim, chief executive, Retail Economics said: "This is turning out to be a year of distress for the retail sector".

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