Baby retailer Mothercare reportedly considering axing a third of stores
- Credit: Archant
Mothercare could be the next high street retailer to announce store closures amid reports it is considering a restructure.
The baby clothes seller is reported to be looking at the possibility of a company voluntary arrangement (CVA), an agreement with creditors which reduces costs to keep a business operating, and could close a third of its 143 stores.
If so it would be following high street chains New Look, Select, Jamie's Italian, Byron and Prezzo in resorting to the measure in recent months.
A Mothercare spokesman said the company had already announced plans to slim down its portfolio to between 80 and 100 stores as part of a transformation plan. He added Mothercare's talks with lenders about the terms of its financial facilities were 'progressing constructively' and it expected to conclude them before revealing its preliminary results in May. The firm is also looking at other ways of accessing additional funding.
Mothercare has stores in Ipswich, Norwich and Cambridge in East Anglia.