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.