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.