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Mothercare mulls store closures

Ailing retailer Mothercare is said to be considering store closures and seeking rent reductions as it battles challenging trading conditions.

The Sunday Times reported yesterday that Mothercare is understood to be exploring a possible company voluntary arrangement (CVA) and could seek to close up to 143 stores.

CEO David Wood, who joined after the departure of Mark Newton-Jones last week, outlined his mission to put a “demanding focus” on the retailer’s turnaround plans.

A spokesman for Mothercare said: ”As announced in the update on the 21 March, the discussions with our lenders on the terms of our existing financial facilities are progressing constructively. We expect those discussions to conclude before the preliminary results in May, and the lenders have agreed to defer the testing of our financial covenants that were due on 24 March.  We are also exploring additional sources of financing to support and maintain the momentum of our transformation programme and we are engaged in preliminary discussions on securing such additional financing.”

 

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