900 jobs at risk as Mothercare announces more store closures
Mothercare is to close another raft of stores, meaning 60 of its outlets will be shut by June next year, putting 900 jobs at risk.
The retailer, which has a store in Preston, said it was putting its Childrens World division into administration, but that 13 of these 22 stores would be saved.
-->READ MORE: Mothercare confirms 50 store closures, with loss of hundreds of jobsThe changes come after Mothercare cleared a restructuring plan known as a Company Voluntary Agreement (CVA), an insolvency procedure that required the approval of the retailer's landlords.
The group has also undertaken a significant fundraising initiative to raise £32.5 million from its existing shareholders.
Mothercare has identified savings of £19 million through the process, and hopes to realise £10 million in cash.
Clive Whiley, Mothercare's interim executive chairman, said: "When I joined the business just three months ago, Mothercare faced a bleak future with growing and pressing financial stresses upon the business.
"We have worked tirelessly as a team to get to where we are today and this fully underwritten equity issue marks the end of this initial phase, returning the group to financial stability."
In May, Mothercare unveiled a brutal set of annual results, swinging to a £72.8 million pre-tax loss in the year to March 24, which compares with a £7.1 million profit in 2017.
The store closures come at a dismal time for the high street.
Since January, Toys R Us and Maplin have filed for administration, while fashion retailers such as New Look, Carpetright and others have embarked on radical store closure programmes.