Mothercare ‘set to rehire boss and close 50 stores’

Latest news

    Mothercare customersImage copyright Newscast

    Mothercare is set to reappoint the chief executive who left in April after poor Christmas trading and a profits warning, reports suggest.

    Mark Newton-Jones had been replaced in the job on 4 April after four years in charge of the baby goods retailer.

    The firm will also announce the closure of 50 of its 137 remaining stores when it releases its annual results later, according to a Sky News report.

    Mothercare has been putting together a rescue deal.

    Earlier this week it said it was “finalising a comprehensive restructuring and refinancing package to put the business on a stable and sustainable financial footing.”

    Full details are expected to be revealed along with its full-year results statement, but the reorganisation is likely to involve an insolvency procedure called a company voluntary arrangement (CVA)

    That typically sees retailers closing stores and renegotiating rents, in return for a fresh injection of finance.

    Over the past four years Mothercare has closed dozens of stores, taking its total from 200 outlets to 137 last year. It intends to reduce that further to between 80 and 100 stores.

    It is the latest retailer to fall victim to troubles on the UK High Street.

    Earlier this year, toy store chain Toys R Us collapsed into administration along with the electronics retailer Maplin.

    Carpetright has entered into a CVA and announced store closures, as has fashion chain New Look.

    A number of reasons have been blamed for failures on the High Street, including a squeeze on consumers’ income, the growth of online shopping and the rising costs of staff, rents and business rates.

    View the original article: http://www.bbc.co.uk/news/business-44148937

    http://www.bbc.co.uk/news/business-44148937

    In the same category are

    World Para-swimming European Championships: GB’s Tully Kearney wins gold in Dublin Tully Kearney is hoping to make the 2020 Paralympics after missing out in 2016 through injuryTully Kearney said she went through the pain barrier to ...
    Jose Mourinho: Man Utd manager says Man City ‘cannot buy class’ Manchester United beat Manchester City in April to delay their title celebrationsPremier League champions Manchester City are a "rich club" but "cann...
    Newspaper headlines: People’s Vote ‘boost’ and ‘100’ Tory rebels By BBC News Staff Image caption The Observer reports that People's Vote - the campaign group calling for a referendum on the final Brexit deal -...
    Former Conservative MP Sir Peter Tapsell dies aged 88 Image caption Sir Peter Tapsell served as an MP for more than half a century Former Conservative MP Sir Peter Tapsell has died aged 88.Sir Peter w...
    Tyson Fury beats Francesco Pianeta to edge towards Deontay Wilder bout Tyson Fury produced a focused display to dominate Francesco Pianeta and secure a points win in Belfast which looks set to seal a shot at WBC world he...
    Westminster car crash: Man charged with attempted murder Image copyright PA Image caption Salih Khater is charged with two counts of attempted murder A man has been charged with two counts of attempted m...

    Leave a comment

    Your email address will not be published. Required fields are marked *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.