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.
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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.