Mothercare to speed up store closures and job cuts
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Mothercare have announced they are set to speed up the closure of stores and cutting of jobs, in order to attract fresh funds from investors.
The baby store chain confirmed to media that it was launching an equity fund as part of a restructuring and refinancing package.
The new strategy is believed to include a company voluntary agreement (CVA), and would see the retailer cut its stores from 137 down to a target of between 80 and 100. The store closures are expected to result in the loss of hundreds of jobs.
In an announcement Mothercare said it was “finalising a comprehensive restructuring and refinancing package to put the business on a stable and sustainable financial footing”.
Analysts believe that the retailer will report a 95% fall in profit when figures are announced on Thursday.
Mothercare had previously cut its stores from 220 down to 137.
