Baby and maternity retail group Mothercare released a statement earlier this week, announcing that it is close to revealing the details of its final rescue plan.
The retailer said it is is finalising a ‘comprehensive’ reorganisation and refinancing of its business and intends to announce the plan on 17 May when it releases its annual results.
The reorganisation is likely to be a company voluntary arrangement (CVA), which typically results in retailers closing stores and renegotiating rents, in return for fresh financing. To shore up the company’s finances Mothercare also plans to sell shares and secure new lines of debt.
The announcement was made ‘in light of recent speculation’. It said: “Mothercare announces that it is now finalising a comprehensive restructuring and refinancing package to put the business on a stable and sustainable financial footing.”
The statement continued: “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.”
Mothercare recently replaced its ceo and chairman after a difficult start to 2018.
