UK's Mothercare to close 50 more stores in restructuring plan

Cornelia Mascio
Mag 17, 2018

He will head up a company voluntary arrangement (CVA) which will see the chain close as many as 50 stores, putting hundreds of jobs at risk.

Mothercare employs about 3,000 people across 137 outlets, including the huge store at Crown Point, Leeds, also in Rotherham, Doncaster, Bradford, Wakefield, York, Sheffield, Richmond, Harrogate and Hull.

David Wood, who was brought in to replace Newton-Jones is expected to take up another executive role.

The firm is finalising a rescue deal after years of falling sales and profits on the struggling high street and is set to make a full announcement tomorrow.

Since January, Toys R Us and Maplin have filed for administration while fashion retailers such as New Look and Select have embarked on radical store closure programmes.

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

"We are in the final stages of detailing these restructuring plans alongside new committed debt facilities, an underwritten equity issue and access to other sources of capital which we intend to announce with our final results".

Stores in Ashford and Sittingbourne have also shut in recent years.

Retailers across the board have been battered by weak consumer confidence off the back of soaring Brexit-fuelled inflation.

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