NEWS

Shareholders at Mothercare approve fundraising share offer

Published on: 30th July 2018

At a general meeting last week, investors gave the company the green light to raise an additional £32.5m through the placing of new shares.

Dealings of the new shares commenced last Friday morning when the market opened.

The results of the placing and open offer were announced on Thursday 26th July, with almost 78% of shares taken up quickly by investors under the open offer.

The move follows the approval of two CVAs which allowed the company to close 49 of its stores. One more CVA was proposed for subsidiary Childrens World, but this failed to gain enough support from creditors.

Interim chief executive Clive Whiley thanks investors for their support in completing the refinancing, but he warned that the group cannot be “complacent”, as it still has much to do.

Clive commented: “Conditions in the retail sector remain challenging and we know we must adapt with pace as we move forward. We are clear what needs to be done and have targeted significant efficiencies and cost savings, as well as areas of investment, both of which will underpin our return to a sustainable future.”

He added: “The whole team is focused on getting Mothercare, the global brand, back to where it should be as a fit for purpose business with a stronger, stable and more efficient structure both here in the UK and within our International operations.”

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