Mothercare to close 50 stores putting Kent jobs at risk

  • Mothercare to close 50 stores putting Kent jobs at risk

Mothercare to close 50 stores putting Kent jobs at risk

Mothercare will tomorrow reveal it has rehired former boss Mark Newton-Jones just over a month after he was sacked, in a surprise move which will see him take the helm of the troubled retailer as it embarks on a major restructuring.

Mothercare said it would seek creditor approval for a company voluntary arrangement (CVA) that would enable it to shut 50 stores and secure rent reductions on 21 others.

It employs about 3,000 staff across 137 outlets, including three locations in Kent at Bluewater, Canterbury and Maidstone.

It is thought that David Wood, the former Tesco executive who had replaced Mr Newton-Woods, will shift to another position with the group, although it was not clear what this role would be this evening.

In a statement earlier this week, the retailer said: "Mothercare announces that it is now finalising a comprehensive restructuring and refinancing package to put the business on a stable and sustainable financial footing".

It comprises £28 million through an equity capital raising, an extension of its existing debt to £67.5 million, £18 million in shareholder and trade partner loans.

"These measures provide a solid platform from which to reposition the group and begin to focus on growth, both in the United Kingdom and internationally".

High Street stores, New Look, Carpetright, Prezzo and Toys R Us, have all announced CVAs recently as they too are struggling on the high street.