Mothercare to close 50 stores

Mothercare says 50 of its stores are to close

Mothercare declined to comment though it is now confirmed that Newton-Jones, who stepped down as CEO in April, a month after Mothercare warned on full-year profit, is to return to the firm. Reports suggested Mr Whiley had been a key player in pulling together a rescue deal and forming the restructuring plans.

The man that had been brought in to replace him, David Wood, will now become managing director.

The latest change at the top, first reported by Sky News, will be revealed alongside details of Mothercare's substantial restructuring, which it is undertaking in a bid to avoid becoming the latest high street name to collapse into administration.

He will head up a company voluntary arrangement (CVA) which will see the chain close as many as 50 stores, putting hundreds of jobs at risk.

High Street stores, New Look, Carpetright, Prezzo and Toys R Us, have all announced CVAs recently as they too are struggling on the high street.

In a statement earlier this week, the retailer said: "Mothercare announces that it is now finalising a comprehensive restructuring and refinancing package to put the business on a stable and sustainable financial footing".

In addition to the proposed equity issue the firm has also secured revised committed debt facilities of £67.5 million, £8 million of new shareholder loans and a new debtor backed facility of up to £10 million from a trade partner.

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