Mothercare is to axe 50 shops, leading to tons 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 shall be carried out by means of an organization voluntary association (CVA), permitting the agency to close loss-making outlets and safe rental reductions.
Mothercare employs about three,000 employees throughout 137 shops.
As a part of the restructuring, the retailer additionally introduced a refinancing bundle value as much as £113.5m.
It includes £28 million by means of fairness capital elevating, an extension of its present debt to £67.5 million, and £18 million in shareholder and commerce accomplice loans.
The corporate’s interim chairman, Clive Whiley, stated: “The latest monetary efficiency of the enterprise, impacted specifically by numerous legacy loss-making shops inside the UK property, has resulted in an unsustainable scenario for the Mothercare model, which means the group was in clear want of an applicable decision.
“These complete measures present a renewed and secure 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 deal with progress, 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 reminiscent of New Look and Choose have launched into daring retailer closure programmes.
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