Tue, 22 May 2018 | ADMINISTRATION
Mothercare has reinstated its former chief executive Mark Newton-Jones and announced plans to close 50 stores amid the delivery on an insolvency rescue package.
According to the retailer, it plans to push forward its store closure plans in a bid to gain £113.5 million of funds through the removal of 50 sites. Additionally, this refinancing will be supported by the pursuit of a Company Voluntary Arrangement (CVA), a form of insolvency that will allow the company to secure rent reductions to reduce outgoings.
This move, which is becoming popular with high street companies, will also buy the company more time to trade and avoid going into administration while potentially searching for a buyer, according to Simon Underwood, business recovery partner at Menzies LLP.
"Allowing a business to continue trading and its existing management to retain control, CVAs are sometimes viewed as a more attractive option than other methods of insolvency, such as pre-pack administrations," said Mr Underwood.
"However, if all struggling retailers start taking this route, it could make matters worse for the ailing High Street – with more shoppers moving online and creating more empty stores.
The decision to pursue insolvency has also been taken by other large high street brands, including Toys R Us, Carpetright and Prezzo, all of which have closed a number of their stores in a bid to save money while they seek reductions in rents and other overheads.
Commenting on Mothercare's decisions moving forward, the firm's chairman Clove Whiley, added: "These measures provide a solid platform from which to reposition the group and begin to focus on growth, both in the UK and internationally."
Now available to the market is one of Cork's largest tile importers and retailers, which has also been specialising in Porcelain, Bathrooms and Lighting since 1993. Corks largest importer and retailer of tiles. Sizeable showroom. Robust supplier rela...
LEASEHOLD
Products include table tops and bases, highchairs and stools.Operates with over 150 clients, all of whom provide reliable and repeat business.Members of the FIRA trade association.Multiple opportunities for growth.Offers invited.
LEASEHOLD
Functions as a one-stop shop for all of its clients’ requirements,providing complete solutions.With an average length of service of 12 years, all staff members boast strong levels of knowledge, enabling the business to forge a strong working environm...
FREEHOLD
|
28
|
|
Jan
|
Fairstone completes double acquisition | BUSINESS SALE
Tyne and Wear-based consolidator Fairstone Financial Managem...
|
27
|
|
Jan
|
Amigo founder puts company up for sale | BUSINESS SALE
Amigo founder James Benamor has put the subprime lender up f...
|
24
|
|
Jan
|
Hawkin’s Bazaar enters administration | ADMINISTRATION
Norwich-based novelty toy retailer Hawkin’s Bazaar has...
Sign up to receive our acquisition alert emails to get your FREE guide
|
05
|
|
Nov
|
Mothercare to appoint administrators | ADMINISTRATION
Baby products retailer Mothercare has announced that it will...
|
31
|
|
Jul
|
Mothercare poised to announce plans for division sale | BUSINESS SALE
Mothercare has revealed that it is close to announcing plans...
|
09
|
|
Jul
|
Mothercare store closure puts Children’s World in administration | ADMINISTRATION
Mothercare has added another nine store closures to its CVA ...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources