Mothercare to close 50 stores, with loss of hundreds of UK jobs
Mothercare is to axe 50 shops, leading to lots of of job losses, within the newest blow for the excessive road.
In a transfer that can stun many observers, the corporate has additionally rehired its chief govt, Mark Newton-Jones, who was given the elbow final month.
The closures are a part of a restructuring plan and will likely be carried out by way of an organization voluntary association (CVA), permitting the agency to close loss-making outlets and safe rental reductions.
Mothercare employs about three,000 workers throughout 137 retailers.
As a part of the restructuring, the retailer additionally introduced a refinancing bundle value as much as £113.5m.
It contains £28 million by way of fairness capital elevating, an extension of its current debt to £67.5 million, and £18 million in shareholder and commerce companion loans.
The corporate’s interim chairman, Clive Whiley, mentioned: “The current monetary efficiency of the enterprise, impacted particularly by a lot of legacy loss-making shops throughout the UK property, has resulted in an unsustainable scenario for the Mothercare model, that means the group was in clear want of an applicable decision.
“These complete measures present a renewed and steady monetary construction for the enterprise and can drive a step change in Mothercare’s transformation.
“These measures present a strong platform from which to reposition the group and start to give attention to development, each within the UK and internationally.”
Retailers throughout the board have been battered by weak shopper confidence off the again of hovering Brexit-fuelled inflation.
They’ve additionally needed to deal with surging wage prices and eye-watering enterprise charge hikes.
Since January, Toys R Us and Maplin have filed for administration whereas style retailers akin to New Look and Choose have launched into daring retailer closure programmes.
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