CVA failure sees closure of Mothercare World
Childrenswear brand Mothercare has completed its CVA and will now exit 70 stores – rather than the 50 originally envisaged. But the CVA for affiliated brand Mothercare World failed to win approval and the brand will go out of business. Nine of its 22 stores will close and the remaining 13 will transfer to Mothercare.
As a result Mothercare will trade from 77 stores by June 2019, with 19 of those stores on reduced rents.
To secure its position, the company now plans to raise £32.5m from existing shareholders and take on £67.5m of new debt.
Chief Executive Mark Newton-Jones said: “We have seen an unprecedented period for UK retail and we have not been alone in facing a number of strong headwinds. I’m pleased to say however, that we are now in a position to re-focus on our customers and improve the Mothercare brand both in the UK and across the globe.”