Mothercare’s plans for a company voluntary agreement (CVA) to stave off further problems, have been plunged into uncertainty after a mistake was made during the counting of votes last week.
It was thought that the CVA would see Mothercare’s Children’s World company pay off its debts. But last week’s vote initially saw 73.3% of creditors vote through the CVA plans, only to discover afterward that in order for a decision to be made the company would require the support of 75% of creditors.
The mistake was discovered by Mothercare’s advisor KPMG when it “scrutinised the voting returns relating to the CVA processes ahead of their formal filing with the High Court”.
Mothercare has now said it is now “considering all options in respect of Children’s World as a legal entity and a further announcement will be made in due course as required”.
Mothercare CEO Clive Whitley said: “KPMG have confirmed the votes relating to MUK and ELC CVA’s passed by a clear majority, however it is now clear that the CVA of Children’s World was not carried by creditors by a narrow margin.
“This will neither unsettle the UK restructuring and refinancing nor jeopardise our future transformation plans, which are already underway.”