Mothercare to swing axe on 50 stores

Galtero Lara
May 17, 2018

As part of the rescue plans the company is also going to re-hire the chief executive it sacked just over a month ago.

There are fears hundreds of jobs could go as Mothercare announces big store closures.

"Of course we regret having to close stores and the impact this will have on colleagues".

The retailer, which employs 3,000 people across 137 outlets - including in Ipswich, Clacton, Chelmsford and Norwich - said the closures would be carried out through a company voluntary agreement (CVA).

It is thought that David Wood, the former Tesco executive who had replaced Mr Newton-Woods, will shift to another position with the group, although it was not clear what this role would be this evening.

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In a statement earlier this week, the retailer said: "Mothercare announces that it is now finalising a comprehensive restructuring and refinancing package to put the business on a stable and sustainable financial footing".

In addition to the proposed equity issue it has also secured revised committed debt facilities of 67.5 million pounds, 8 million pounds of new shareholder loans and a new debtor backed facility of up to 10 million pounds from a trade partner.

Already this year Toys R Us UK, electricals group Maplin and drinks wholesaler Conviviality have moved into administration, while fashion retailer New Look and floor coverings retailer Carpetright are closing stores.

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

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