Mothercare is to close 50 stores

Mothercare is to close 50 stores

The store closures will leave it with 78 outlets in the United Kingdom by 2020.

Retailers have been under severe pressure in recent months amid a year-long period in which household finances have been squeezed by the combination of rising inflation and stuttering wage growth. It had intended have 92 outlets by 2023, but has now accelerated its closure plans and will have just 73 by that year. Mothercare, they told me, was too pricey.

Frances Bishop owner of children's shop The Pud Store, said on Twitter the news had "been coming for a long time". It's United Kingdom business hasn't made a profit since 2012.

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That won't be the only measure Mothercare wants to introduce; it also wants landlords of 21 other sites to agree to "material" rent reductions in a bid to dramatically cut its cost base.

Mothercare said that the process to implement the CVA Proposals is expected to complete in July 2018 with the CVA creditor meetings expected to be held on June 1, 2018.

It will also see the return of chief executive Mark Newton-Jones just 36 days after he unexpectedly left the company.

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Mr Whiley, who took over as chairman after the retirement of Alan Parker last month, is understood to have been instrumental in putting together the financing, as well as the rehiring of Mr Newton-Jones, who had lost his job under the tenure of Mr Parker.

Working capital from Mothercare's global franchise partners will also be part of the package.

"These measures provide a solid platform from which to reposition the group and begin to focus on growth, both in the United Kingdom and internationally".

The high street chain made the decision due to the current poor climate for retailers that has already seen Toys R Us and Maplin close down this year.

The chain which sells mother, baby and toddler products is the latest retailer to announce substantial store closures.

Richard Lim, chief executive, Retail Economics said: "This is turning out to be a year of distress for the retail sector".

"I think Mothercare has not really delivered on the promise implicit in the name, in trading terms, for generations really", he said.

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