Mothercare to close 50 stores with the loss of hundreds of jobs
Mothercare is to close 50 stores with the loss of hundreds of jobs, it has been announced.
The planned closures form part of a company restructure and will be carried out through a company voluntary arrangement - a move which would allow it to close loss-making shops and secure rental discounts.
Mothercare employs around 3,000 members of staff across 137 outlets.
POLICE: CCTV images released in hunt for 'car key burglary' gang active in South YorkshireThe stores earmarked for closure are set to be announced today.
Mark Newton Jones, who was given the elbow as chief executive last month, will return to the fold under the changes.
As part of the restructuring, Mothercare also announced a refinancing package worth up to Â£113.5 million.
It comprises Â£28 million through an equity capital raising, an extension of its existing debt to Â£67.5 million, Â£18 million in shareholder and trade partner loans.
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.
"These comprehensive measures provide a renewed and stable financial structure for the business and will drive a step change in Mothercare's transformation.
"These measures provide a solid platform from which to re-position the group and begin to focus on growth, both in the UK and internationally."
Mothercare has stores at Meadowhall and Crystal Peaks in Sheffield, Parkgate Retail World in Rotherham and Danum Retail Park in Doncaster