Mothercare has announced plans to close fifty stores as part of a rescue plan. The closures could result in the loss of at least 800 job losses throughout the UK.
The restructuring plan, known as a Company Voluntary Agreement or CVA will secure funding of £113 million and result in the closure of loss making stores and reduced rents.
Mothercare reported a loss of £72.8 million in the recent financial year ending March 2018, due to store closures and expensive leases.
The company also announced it will be reappointing Mark Newton-Jones as their Chief Executive, who only left the company in April this year. David Wood, who was brought in to replace him in April will become Managing Director.
Clive Whiley, Interim Chair, 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.”
“These comprehensive measures provide a renewed and stable financial structure for the business and will drive a step change in Mothercare’s transformation.”
This year has seen many High Street names such as House of Fraser, Toys R Us, Carpetright and New Look all entering into a CVA, resulting into store closures and job losses.
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