Jobs under threat as Mothercare set to close stores across the UK


Newton-Jones's miraculous return follows the departure of former chairman Alan Parker, who announced that he was stepping down in mid-April.

Newton-Jones' replacement as CEO David Wood, a former Tesco (TSCO.L) executive, will become group managing director.

In a statement earlier this week, the retailer said: "Mothercare announces that it is now finalising a comprehensive restructuring and refinancing package to put the business on a stable and sustainable financial footing".

Mothercare has confirmed it is closing 50 stores as part of a rescue plan.

Fifty of these stores will close straight away if creditors - landlords, suppliers, the tax man - approve the company voluntary arrangement (CVA) proposals.

Mothercare Ireland is a completely separate company and as a result, our 15 Irish stores are unaffected by any plans in the proposal and will continue to trade as normal.

The potential for the Mothercare brand in the United Kingdom, benefitting from a restructured store estate, and internationally remains significant.

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This is not the first time Mothercare has struggled, with the retailer closing nearly half of its stores across the United Kingdom in the last five years.

Other retailers to pursue CVAs this year include Carpetright, House of Fraser and New Look, while Toys R Us and Maplin have gone into administration.

Mothercare's restructuring would see it shrink from 137 stores to 78 in two years' time and 73 in 2022 - down from a United Kingdom network of more than 400 stores in 2007 shortly after it bought the Early Learning Centre chain.

The refinancing comprises a proposed equity capital raise of £28m, which would be launched in July 2018 by way of a firm placing, placing and open offer, new shareholder loans of £8m from Mothercare's largest shareholders and a £10m debtor backed facility of £10m from trade partners.

'These measures provide a solid platform from which to reposition the group and begin to focus on growth, both in the United Kingdom and internationally'.

A number of reasons have been cited for failures on the High Street, including a squeeze on consumers' income, the growth of online shopping and the rising costs of staff, rents and business rates.