May 14, 2018
Mothercare close to revealing rescue plan
Mothercare has said it is finalising a "Comprehensive" reorganisation and refinancing of its business. The reorganisation is likely to be a company voluntary arrangement, which typically results in retailers closing stores and renegotiating rents, in return for fresh financing. To shore up the company's finances Mothercare plans to sell shares and secure new lines of debt. Mothercare did not detail any store closures, but typically a CVA will involve shutting down unprofitable outlets and renegotiating rents on remaining stores. The company's shares plunged 12% in early trading, before recovering.
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