Nursery retailer Mamas & Papas is to cut costs across its UK store portfolio via a Company Voluntary Arrangement (CVA).
As previously mooted in July the chain, which appointed retail veteran Derek Lovelock as its interim boss last week, is considering a package of measures which could include store closures and rent cuts as part of a rescue plan. The move comes after private equity firm Blue Gem bought a majority stake in the business last month.
Deloitte is overseeing the CVA, which will be voted on by landlords on September 10.
The retailer has begun a consultation process with its staff.
David Scacchetti, chairman of Mamas & Papas, said: “While our international and wholesale businesses are performing strongly, the UK retail environment is the toughest I’ve experienced in the 30 years since we founded Mamas & Papas and it has become clear that we need to take action if we are to maintain our proud position as a brand trusted by parents across the world.
“We believe the proposals announced today will create a platform to allow us to continue offering innovative, premium products to customers in the UK and internationally, both in stores and online.”
Mamas & Papas has around 60 stores in the UK. International stores are unaffected by the CVA.