Mothercare has raised almost 78% of its anticipated £32.5m to invest in digital and mobile from its existing shareholders and said the remaining 22% will be taken up following the placing.
The placing and open offer remains conditional on the passing of the resolutions at the general meeting, to be held at 10am today.
Earlier this month, Mothercare chief executive Mark Newton-Jones told Drapers improving the retailer’s digital capabilities was a priority
“Following the restructuring, we can go faster and we will be able to invest,” he said. ”Most of the stores we are keeping have already been refurbished so we don’t need to spend there, but we do need to invest in digital and mobile.
“Our core customer is 25 to 35 years old and a digital native. Around 85% of our online turnover happens on a mobile, and of that only 10% is on a tablet. Our shopper uses a smartphone, so we need to speed the site up and improve our content and videos. It is important to differentiate ourselves – we are a specialist not a generalist.
He added that pricing in the UK would also be lowered to combat the tough trading environment: “The UK market is brutal. We won’t dumb down our product, but we will pass on value to our customers through multi-buys and lower prices in the UK over the next year.”