This ad will be closed automatically in X seconds.

Mothercare hoping to enter CVA

Nursery and baby retailer Mothercare is hoping to reduce costs by entering a company voluntary arrangement (CVA).

The decision to close up to 47 of 143 stores has been made following the recent appointment of new ceo David Wood.

If agreed with lenders, the CVA (a form of insolvency aimed at protecting a business from going bust by reducing its costs) could lead to Mothercare closing a third of its UK store portfolio. Leases could also be ­renegotiated with landlords to reduce rental payment pressures.

Mothercare is currently undergoing rescue talks with creditors as it hopes to refinance its debt before it breaches financial covenants.

The Press Association revealed last week that Sainsbury’s was considering a potential takeover after watching the struggling chain, but decided not to make an offer for the business.

MORE NEWS
 
There are just two weeks left if you would like to nominate your favourite retailer into one of the retail...
 
There is just one month left to submit your Marketing Award entries to the The Progressive Preschool Awards 2018....
 
Digital marketing, media and PR agency has won a prestigious business award and advanced to the national final....
 
Label is aiming to help make it easier for families to make balanced food choices....
 
Multi-platform strategy for new preschool master toy collection....
 
Venue move is part of UBM’s ambitious strategy to evolve the show....
Get the latest news sent to your inbox
Subscribe to our daily newsletter