Mothercare to close 60 stores; seeks £32m from shareholders

Mothercare on Monday went cap-in-hand to shareholders in an effort to raise £32.5m through a one-for-one placing and open offer at 19p a share as it revealed it was now shutting 60 shops instead of the 50 originally earmarked.

It added that its Childrens World division was being placed into administration after creditors failed to back a company voluntary arrangement.

Mothercare will transfer 13 of the Childrens World outlets into other parts of its business.

“The performance of the group since the start of full year 2018/19 has broadly followed a similar pattern to that seen in the second half of full year 2017/18,” the company said.

“Conditions in the UK have remained challenging, with consumer confidence and store footfall remaining under pressure.”

The company said sales had fallen 7% in the first 14 weeks of the financial year, with like-for-like sales down 4.6% over the same period.

Chief executive Mark Newton-Jones said the restructuring plan should help rehabilitate the brand.

"We have seen an unprecedented period for UK retail and we have not been alone in facing a number of strong headwinds. I’m pleased to say however, that we are now in a position to re-focus on our customers and improve the Mothercare brand both in the UK and across the globe," he said in a statement.