Sun, 08 Apr 2018 | BUSINESS SALE
Struggling baby and toddler clothing retailer Mothercare is fast running out of cash and believed to be investigating new avenues to raise finance quickly.
If these initiatives fail, it is near certain that the share price of Mothercare will spiral downwards, leaving the firm as easy pickings for retail vulture funds and entrepreneurs looking for distressed turnaround opportunities.
Mothercare has called in KPMG for restructuring advice and has been in talks with its lenders, including Barclays and HSBC about raising funding limits. It is believed the lenders have agreed temporary advances till May. It is possible they had a hand in the removal of CEO Mark Newton-Jones who was appointed to the position four years ago. Newton-Jones, who has spent his time trying to move the business more firmly into the online arena, was jettisoned suddenly last Wednesday and replaced with ex-Tesco man David Wood.
Online sales have not increased as fast as expected and indeed dropped 6.9 per cent over the Christmas quarter, nearly as bad as the 7.2 per cent fall in store sales over the period.
The cashflow crisis is believed to be at an emergency level with the talks at KPMG involving Mothercare entering into a company voluntary arrangement (CVA). In this scenario one of the obvious moves would be to immediately shut down loss-producing stores.
Founded by James Goldsmith and Selim Zilkhar in 1961, Mothercare has grown into a global business with over 1000 international franchises and 140 stores in the UK. The business recorded a £16.8m pre-tax loss in the half-year to October 2017, on sales of £340m.
Modern convenience store, lucrative Weymouth trading position, fronts busy thoroughfare, opposite railway station, close taxi rank, bus stops, and seafront/esplanade/beach, surrounded by residential areas and hotel/holiday accommodation, short walk t...
LEASEHOLD
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
|
29
|
|
Jan
|
MBO at Signature Private Finance | MBO/MBI
The senior management team at finance provider Signature Pri...
|
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...
Sign up to receive our acquisition alert emails to get your FREE guide
|
14
|
|
Jan
|
Beales in sales talks to avoid administration | ADMINISTRATION
Department store chain Beales is in talks with two potential...
|
09
|
|
Dec
|
Scunthorpe construction group call in administrators | ADMINISTRATION
Scunthorpe-based Clugston Group and Clugston Construction ha...
|
06
|
|
Dec
|
KPMG agrees to sell pensions arm | DIVISION SALE
Professional services network KPMG has announced that it has...
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