Mon, 09 Jul 2018 | ADMINISTRATION
Mothercare has added another nine store closures to its CVA after placing its Children’s World division in administration.
This comes as a result of its creditors failing to provide adequate support, which has forced the Mothercare group to shut nine of 22 Children’s World stores and transfer the remaining 13 to other group operations to stay trading.
The company voluntary arrangement (CVA) will allow Mothercare to shut its unprofitable shops, and attain reduced rents. However, the Children’s World administration has forced the group to earmark the closure of 60 stores by June 2019, which is expected to effect up to 900 retail jobs.
Mothercare’s interim executive chairman, Clive Whiley, said: “The last three months of hard work and progress have put in place the foundations to get Mothercare back to where it should be as a fit-for-purpose business with a stronger and more efficient structure both for our UK business and our international franchisees.”
Whiley added that a full assessment of the businesses has alerted the company to further avenues for efficiency and cost-savings amounting to £19 million, which will allow Mothercare to sustain a profitable future.
The group is also expecting issue new shares and raise £32 million from its shareholders.
Mark Newton-Jones, Mothercare’s chief executive, said: “After a very challenging period for our business, we have now finalised arrangements to restructure and refinance the group, ensuring that the transformation of the Mothercare brand we started four years ago can now be completed.
“I’m pleased to say however, that we are now in a position to re-focus on our customers and improve the Mothercare brand both in the UK and across the globe.”
Retails a diverse selection of motorsport and recreational vehicles, with a large range of models (both new and used) for multiple disciplines, and suited to children, novices, and professionals. From an impressive showroom, the company draws custome...
Vehicle leasing broker providing car & commercial vehicles to private individuals & businesses. Works with a trusted network of finance & vehicle suppliers to facilitate lease agreements between 24 & 60 months. Enter agreements with new manufacturers...
Provides an extensive range of 900 products, many of which as an exclusive distributor, owing to its strong relationships with suppliers. Operates from leasehold premises based in South England. Offers invited.
LEASEHOLD
|
21
|
|
Nov
|
Buyer sought as North East contractor enters administration | ADMINISTRATION
A buyer is being sought for Pro-Fix Installations after the ...
|
20
|
|
Nov
|
Swindon waste-to-gas plant construction to resume after administration | ADMINISTRATION
An unfinished waste-to-gas facility in Swindon has secured &...
|
19
|
|
Nov
|
UK government set to approve Cobham takeover | BUSINESS SALE
The British government is poised to approve the $5 billion t...
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...
|
22
|
|
Mar
|
Morrisons puts Kiddicare business up for sale | BUSINESS SALE
Morrisons has decided to put maternity specialist Kiddicare ...
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