Thu, 21 Aug 2014 | BUSINESS NEWS
Nursery retailer Mamas & Papas has appointed Daniel Butters and Clare Boardman of Deloitte to oversee a Company Voluntary Arrangement (CVA) that is being mulled as part of a restructuring to reduce costs.
Daniel Butters said the CVA would enable the company to rehash lease terms and move forward with its wider plans to restructure the business. The creditors, including landlords, are to vote on the proposals on 10 September 2014.
Mamas & Papas sold a major stake in the business to private equity firm Blue Gem in July, after a strategic review earlier this year. The retailer attributed the move to the “persistently tough trading environment”.
Its chairman David Scacchetti said that its international and wholesale operations are performing well, but the “UK retail environment is the toughest I’ve experienced in the 30 years since we founded Mamas & Papas” and that it was apparent they needed to take action to keep their position in the market.
Job losses of up to 90 from its Yorkshire headquarters are expected as part of the shake-up. A 30-day consultation began yesterday (20th August) with staff, that is likely to result in the staff cuts, some of which will be voluntary.
The company has also put plans to the landlords of 60 of its UK stores with the intention of bringing down costs through the CVA, which relates to Mamas & Papas (Retail) Limited only, not the other parts of the group.
Earlier in August it drafted in retail executive Derek Lovelock, who arrived fresh from being chairman at Karen Millen and Aurora Fashions, as its interim CEO.
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