Jul 9, 2018
Mothercare drops 9% after announcing latest stage of revamp
Shares in Mothercare have lurched lower after the company said it would shut more stores than previously expected and highlighted "Challenging" conditions in its home market of the UK. In early trading, shares dropped by around 12 per cent before hovering 9 per cent lower from Friday's close, at 26p. The retailer of children's products said on Monday that it would seek to raise £32.5m from existing shareholders as part of its efforts to push through a restructuring. It also said it is putting its Childrens World unit into administration, which will involve additional store closures. "We have seen an unprecedented period for UK retail and we have not been alone in facing a number of strong headwinds," said CEO Mark Newton-Jones. The plans released on Monday should "[ensure] that the transformation of the Mothercare brand we started four years ago can now be completed", he added.
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