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Mothercare CEO takes £132k pay cut and rejoins

Mark Newton-Jones has been re-appointed as CEO of Mothercare on a salary of £480,000.

The former CEO is being reinstated only a month after his resignation. David Wood, the former Tesco executive who had replaced Newton-Jones will now become Mothercare’s group managing director.

A spokesperson for Mothercare told Retail Sector: “Newtone Jones has a major role as part of the team to return to Mothercare to a more stable footing, accelerate the transformation of the group and drive it towards a viable and sustainable future.”

In the last five years Newton-Jones has held directorships with Shop Direct, where he was CEO, and Boohoo where he was a non-executive director from 2013 to 2016.

Mothercare recently announced as part of a Company Voluntary Agreement (CVA) it will shut 50 of its 137 stores with around 800 jobs axed. As part of its restructuring plan the parenting retail chain confirmed that a further 21 stores will see a rent reduction.

As part of the restructuring, Mothercare has also arranged a refinancing package worth up to £113.5m.

At the time Clive Whiley, the company’s interim executive chairman, 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.”

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