Mothercare closing 50 stores with up to 800 jobs lost

Mothercare closing 50 stores with up to 800 jobs lost

Meanwhile, in a move that will stun many observers, Mark Newton Jones, who was given the elbow as chief executive last month, will return to the fold and once again take the top job.

The Dublin-based retailer has been quick to distance itself from its troubled namesake after Mothercare UK, which has already nearly halved the number of stores it has in the past five years, said that its financial outlook was "perilous" and that it will be closing another 50 stores in Britain, and putting 800 jobs at risk.

The man that had been brought in to replace him, David Wood, will now become managing director.

Putting media speculations to rest, Mothercare has confirmed measures to refinance its business and restructuring of its United Kingdom store portfolio.

Shares in Mothercare were up 4.8 pence at 26.6 pence at 0832 GMT, valuing the business at 46 million pounds.

Since January, Toys R Us and Maplin have filed for administration, while fashion retailers such as New Look and Select have embarked on store closure programmes.

The sub-£50mln company now has 137 stores up-and-down the United Kingdom but wants to have a portfolio of just 73 by 2022.

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In a statement, Mothercare said: "Recent financial performance, impacted in particular by a large number of legacy loss making stores within the United Kingdom estate, has resulted in a perilous financial condition for the group".

Today it announced a refinancing package worth up to £113.5 million.

Mothercare said in a statement: "Recent financial performance, impacted in particular by a large number of legacy loss making stores within the United Kingdom estate, has resulted in a perilous financial condition for the Group".

Mothercare said that the process to implement the CVA Proposals is expected to complete in July 2018 with the CVA creditor meetings expected to be held on June 1, 2018.

The struggling retailer has also agreed a rent cut with landlords for 21 of its stores.

That includes £28 million it is seeking to raise from shareholders, an extension of its existing debt to £67.5 million, and £18 million in shareholder and trade partner loans.

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