The retailer proposes to use a CVA to close 49 unprofitable stores over a period of 12 months.
As reported by the Toy Detectives, among the stores due to close down (category 3 stores) are the last three remaining Early Learning Centre toys shops. When ELC was bought by Mothercare in 2007 there were 200 other branches of the specialist toy chain.
The company will also seek rent reductions of 50% for a three year period in 21 locations (category 2).
The Mothercare store in Jersey is already due to close once its lease expires this year. While the Mothercare branches in Ayr and Paisley are freehold properties unaffected by the CVA.
The remaining 64 stores are unaffected by the CVA (category 1).
Mothercare’s restructuring plans rely on its proposed CVA being approved by creditors. Voting on the proposal closes on 31st May. After the vote, a challenge period begins. The final decision on the CVA will be announced by the end of June.
Former CEO, Mark Newton-Jones, has been reappointed back in to the role despite having been sacked just five weeks ago. David Wood, who replaced Mark, will take up a new role as group managing director.
The retailer’s latest results show that Mothercare fell from a £7.1m profit to a £72.8m loss last year.