Creditors of struggling mother and baby products retailer Mothercare have backed a restructuring plan that will lead to the closure of 50 stores.The closures – putting 800 jobs at risk – are part of a company voluntary arrangement (CVA), which allows companies to shut loss-making shops and reduce rents.Under the CVA, Mothercare will also raise £28m through issuing new shares.The firm said it continued to trade and would not be going into administration.Last month, Mothercare said it was in a “perilous” financial position and confirmed that its rescue plan would involve closing 50 stores.The store closures will leave it with 78 outlets in the UK by 2020. It is not yet clear which stores will be closing.Clive Whiley, Mothercare’s interim executive chairman, said: “We are very grateful for the support of our many stakeholders across our creditor base in supporting today’s CVA proposals.”These measures provide a solid platform from which to reposition the group and begin to focus on growth, both in the UK and internationally.”The retailer has already nearly halved its store numbers over the past five years. It had intended to have 92 outlets by 2023, but has now accelerated its closure plans and will have just 73… Read full this story
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