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.”
An opportunity has arisen to acquire a provider of premium stationery brands to a well-established corporate customer base.
An opportunity has arisen to purchase a Stairlift Supplier (Rentals and Sales) based in Southern England, in close proximity to London. This business has operated as a specialist in the sale, rental, installation and ongoing maintenance of new and re...
Close to the ancient town of Romsey in Hampshire which has a population of around 17,000. The massive Norman Abbey dominates the town and the Market Place, dating from shortly after the Abbey, retains much of its original shape. With easy access from...
LEASEHOLD
11
|
Dec
|
MBO at South West education recruitment firm | MBO/MBI
Class People, a Cheltenham-headquartered education recruitme...
11
|
Dec
|
Begbies targets more acquisitions and expects insolvencies to rise further | BUSINESS NEWS
Professional services firm Begbies Traynor Group has said it...
08
|
Dec
|
Derby-based rail carriage painting firm falls into administration | ADMINISTRATION
Paintbox Transportation Services Limited (PTSL), a firm that...
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
We can help you capitalise on insolvent businesses. We list UK businesses in administration, liquidation and with winding up petitions daily. Ensuring our members never miss out on an opportunity
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.