Mothercare is reportedly planning to tap its investors for millions of pounds as it focuses on delivering its turnaround plans.
The retailer plans to ask shareholders for an equity share placing when it outlines a rescue plan and financial results later this week.
In a statement Mothercare said: ”In light of recent speculation and further to the announcement of 2 March 2018, Mothercare announces that it is now finalising a comprehensive restructuring and refinancing package to put the business on a stable and sustainable financial footing. We are in the final stages of detailing these restructuring plans alongside new committed debt facilities, an underwritten equity issue and access to other sources of capital which we intend to announce with our final results, which are expected to be published on 17 May 2018. A further announcement will be made in due course.”
Worldwide sales at the retailer dropped 4.8% for the full year to 24 March 2018 and UK like-for-like sales dropped 1.3%.
New CEO David Wood, who replaced Mark Newton-Jones in April, has outlined plans to bring a ‘demanding focus on the execution’ of Mothercare’s turnaround plans.