CLOSING TIME
Mothercare to shut 50 stores as part of a restructuring plan – and hundreds of jobs are at risk
Mothercare employs around 3,000 across 137 outlets - and now it have announced plans that it will be closing a third of its stores
MOTHERCARE will close 50 stores in a bid to save the struggling firm - putting hundreds of jobs at risk.
The high street chain employs around 3,000 staff across 137 outlets and has said it is in a "perilous" financial position.
2
The decision to close a third of its UK operations comes after reports that many of the stores have been struggling to compete with cheap supermarkets, like Aldi and Lidl.
It's not yet clear exactly which stores are going to be given the axe, or how many jobs hang in the balance.
Mark Newton Jones, who was given the elbow as chief executive last month, will return to the fold.
The man that had been brought in to replace him, David Wood, will now become managing director.
The baby retailer has also agreed a rent cut with the landlords of 21 of its stores.
2
It was announced last month the chain was hoping to cut costs by entering a company voluntary arrangement (CVA) - allowing it to pay off debt while still trading.
As part of the restructuring, Mothercare also announced a refinancing package worth up to £113.5 million.
They firm is hoping that the money saved will be able to go towards paying off their debts.
Chairman Clive Whiley said: "The recent financial performance of the business, impacted in particular by a large number of legacy loss-making stores within the UK estate, has resulted in an unsustainable situation for the Mothercare brand, meaning the group was in clear need of an appropriate resolution.
"These comprehensive measures provide a renewed and stable financial structure for the business and will drive a step change in Mothercare's transformation.
"These measures provide a solid platform from which to reposition the group and begin to focus on growth, both in the UK and internationally."
MOST READ IN NEWS
Mothercare has almost halved its number of stores over the last five years.
It had originally planned to have 92 shops by 2023 but this has been accelerated to just 73 by the same year.
As well as the restructure, Mothercare has arranged a refinancing package worth up to £113.5million.
This includes £28million raised through issuing new shares and an extension of its existing debt arrangements.
It is the latest High Street favourite forced to close stores in recent months - with New Look, Carpetright, House of Fraser, Prezzo, Byron and Toys R Us UK all announcing closures.
Mothercare staff recently claimed to the Sun Online that they work in a pressurised environment with long hours and a work load so high it feels like they are "selling their soul" to the firm.
The company is one of the country's biggest maternity and children's retailers with about 140 stores in the UK and more than 5,000 employees worldwide.
We pay for your stories! Do you have a story for The Sun Online Money team? Email us at [email protected] or call 0207 78 24516. Don't forget to join the for the latest bargains and money-saving advice.
Topics