• News
  • Money

Mothercare confirms 50 closures in rescue plan

Mothercare confirms 50 closures in rescue plan

In another surprise move, Mothercare has reappointed Mark Newton-Jones, the chief executive who was sacked last month after a big fall in sales over the Christmas trading period and a profits warning. Reports suggested Mr Whiley had been a key player in pulling together a rescue deal and forming the restructuring plans.

The Dublin-based retailer has been quick to distance itself from its troubled namesake after Mothercare UK, which has already nearly halved the number of stores it has in the past five years, said that its financial outlook was "perilous" and that it will be closing another 50 stores in Britain, and putting 800 jobs at risk.

The retailer, meanwhile, stresses that its recent financial performance, impacted in particular by a large number of legacy loss making stores within the United Kingdom estate, has resulted in an unsustainable situation.

Mr Newton-Jones was ousted in early April by chairman Alan Parker, who has himself since left the business.

Thursday's deal will involve an eventual United Kingdom store target of 73, while its £67m banking facilities, provided by Barclays and HSBC, would be extended until 2020.

"But like many other traditional retailers, in recent years the group has been adversely affected by the consumer shift to online shopping, as well as the trend of declining footfall".

Recently Maplin and Toys "R" Us announced they were going into administration, while teen accessories shop Claire's Accessories has also filed for bankruptcy.

The retail giant said on Monday that it had been working on a comprehensive restructuring and refinancing package. The company will disclose details of the restructuring plan along with full year earnings on Thursday a source said

The chain which sells mother, baby and toddler products is the latest retailer to announce substantial store closures.

"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".

It has also had to contend with surging wage costs and eye-watering business rate hikes.

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

Richard Lim, chief executive, Retail Economics said: "This is turning out to be a year of distress for the retail sector".

Its plans to raise more than that amount by issuing new shares will require investor support.

Leave Your Comment

Leave Your Comment


Latest News

Breaking News



Recommended

Woman Mauled To Death By Pack Of Small Dogs, Police Investigating

She added: 'They have really noticeable characteristics like their knobby legs, knees, very short-legged dogs and their coats'. Garcia was mauled at the intersection of Banyon and Mary Niblack roads and later died from her injuries, according to KTEN.

Arab League fails to agree on United States envoy recalls

Many critics have called it an excessive use of force and a Google search reveals wide-ranging criticism of Israel for its actions.

Italy 'very important' to European Union , says Juncker

Di Maio told reporters in parliament "the recipe to lower public debt is by investments and expansionary policies". Italy's 10-year bond yield jumped 14 basis points to 2.08 percent, IT10YT=RR its highest level since early March.

European Union to take six countries to the court over air quality standards

The government's latest plan in 2017 was condemned as "woefully inadequate" by city leaders and "inexcusable" by doctors . Most of the concern is about emissions from diesel vehicles, which pump unsafe levels of nitrogen oxide into the air.

Microsoft to Launch Cheaper Tablet Line to Rival Apple's iPad

On Tuesday, the company released the huge Surface Hub 2 touchscreen, a 50.5-inch device that is created to replace the whiteboard. In 2012, Microsoft launched Surface RT, which ran a very limited version of the Windows 8 operating system at a price of $499.

California lawmaker knocks Starbucks over racial slur on customer cup

The chain faced a public backlash and calls for a boycott after the arrest of two black men at a Starbucks in Philadelphia. The company responded very meekly to the incident by offering the man a $50 gift card, which he said was an insult.

Buffon leaves Juve, but he may still play on elsewhere

The Italian made the confirmation on Thursday during a press conference at the Allianz Stadium. I'll let these three days pass and then I will make a definitive decision, completely calmly.

New documents detail aftermath, gunman interactions in Vegas shooting

She had to jump over the dead body of a security guard on her way before crawling under a stage only a few feet high. Jeff Clark, a department spokesman, said authorities would not comment about the documents released Wednesday.

Brent Crude Hits $80 Amid Concerns Over Iran Supply

The CEO of French oil giant Total said on Thursday he "wouldn't be surprised to see US$100 per barrel" in the coming months. US West Texas Intermediate (WTI) crude futures were at $71.68 a barrel, up 19 cents, or 0.3%, from their last settlement.

'Brainstorm and Green needle' is the new 'Yanny and Laurel'

In addition, perception can be influenced by multiple factors such as age, sex or native language of the listener, she explained. Republican House Speaker Paul Ryan said he'd like "to declare something that is just so obvious: It is laurel and not yanny".