This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at https://www.theguardian.com/business/2018/may/14/mothercare-shareholders-cash-rescue-plan

The article has changed 10 times. There is an RSS feed of changes available.

Version 1 Version 2
Mothercare will tap shareholders for cash as part of rescue plan Mothercare close to rescue plan that will speed store closures
(35 minutes later)
Mothercare is close to agreeing a rescue plan that includes raising fresh funds from investors and accelerating store closures.Mothercare is close to agreeing a rescue plan that includes raising fresh funds from investors and accelerating store closures.
The struggling childrenswear and maternity retailer said it was finalising a comprehensive restructuring and refinancing package to put the business on a stable and sustainable financial footing.The struggling childrenswear and maternity retailer said it was finalising a comprehensive restructuring and refinancing package to put the business on a stable and sustainable financial footing.
“We are in the final stages of detailing these restructuring plans alongside new committed debt facilities, an underwritten equity issue and access to other sources of capital,” it said.“We are in the final stages of detailing these restructuring plans alongside new committed debt facilities, an underwritten equity issue and access to other sources of capital,” it said.
The firm’s new chief executive, David Wood, who was parachuted into the job last month and previously ran US department store group Kmart, will provide further details on Thursday alongside the group’s full-year results.The firm’s new chief executive, David Wood, who was parachuted into the job last month and previously ran US department store group Kmart, will provide further details on Thursday alongside the group’s full-year results.
Mothercare issued a profit warning in January following disappointing sales over Christmas. It slashed its profit forecast to £1m to £5m for the year to the end of March. City analysts are expecting profits to crash to £1m from £19.7m last year.Mothercare issued a profit warning in January following disappointing sales over Christmas. It slashed its profit forecast to £1m to £5m for the year to the end of March. City analysts are expecting profits to crash to £1m from £19.7m last year.
Cau: Owner the Gaucho steakhouse group is considering closing all 22 Cau restaurants, with loss of 750 jobs. This could be done through a a form of insolvency procedure known as company voluntary agreement (CVA).Cau: Owner the Gaucho steakhouse group is considering closing all 22 Cau restaurants, with loss of 750 jobs. This could be done through a a form of insolvency procedure known as company voluntary agreement (CVA).
House of Fraser: The department store chain is expected to close about 20 of its 60 outlets via a CVA. It has already tried to offload up to 30% of its space by downsizing stores. In May, it unveiled an annual loss of £44m.House of Fraser: The department store chain is expected to close about 20 of its 60 outlets via a CVA. It has already tried to offload up to 30% of its space by downsizing stores. In May, it unveiled an annual loss of £44m.
New Look: The fashion chain obtained a CVA in March to cut rents and close 60 stores, with the loss of nearly 1,000 jobs. The rent cuts - on 363 stores - were between 15 and 55%.New Look: The fashion chain obtained a CVA in March to cut rents and close 60 stores, with the loss of nearly 1,000 jobs. The rent cuts - on 363 stores - were between 15 and 55%.
Byron: The troubled upmarket burger chain is closing up to 20 of its 67 restaurants after a CVA was agreed in January. Rent cuts have been agreed at a number of other locations.Byron: The troubled upmarket burger chain is closing up to 20 of its 67 restaurants after a CVA was agreed in January. Rent cuts have been agreed at a number of other locations.
Carpetright: The retailer obtained a CVA in April to close 92 of its 409 UK stores in September with the loss of about 300 jobs.Carpetright: The retailer obtained a CVA in April to close 92 of its 409 UK stores in September with the loss of about 300 jobs.
Jamie’s Italian: The chain closed six locations in 2017 and this year agreed a CVA to close about a third of its 35 loss-making outlets.Jamie’s Italian: The chain closed six locations in 2017 and this year agreed a CVA to close about a third of its 35 loss-making outlets.
Poundworld: The discount retailer is planning to close about 100 of its 355 stores, with the loss of about 1,500 jobs.Poundworld: The discount retailer is planning to close about 100 of its 355 stores, with the loss of about 1,500 jobs.
Prezzo: In March the Italian-themed restaurant group secured a CVA to close 94 of its 300 restaurants, with the loss of 500 jobs. The closures should be completed by the end of May. Rent cuts were agreed on a further 57 locations.Prezzo: In March the Italian-themed restaurant group secured a CVA to close 94 of its 300 restaurants, with the loss of 500 jobs. The closures should be completed by the end of May. Rent cuts were agreed on a further 57 locations.
Debenhams: The under-pressure department store chain wants to get rid of space at 30 of its 165 stores by bringing in gyms and other services.Debenhams: The under-pressure department store chain wants to get rid of space at 30 of its 165 stores by bringing in gyms and other services.
Mothercare: The chain plans to close a third of its 137 outlets. It is in talks with its banks to secure new funding and rumoured to be considering a CVA to fast-track the store closures.Mothercare: The chain plans to close a third of its 137 outlets. It is in talks with its banks to secure new funding and rumoured to be considering a CVA to fast-track the store closures.
Homebase: The DIY chain is in talks with potential buyers and also thought to be considering a CVA after a botched takeover by Australia’s Bunnings.Homebase: The DIY chain is in talks with potential buyers and also thought to be considering a CVA after a botched takeover by Australia’s Bunnings.
Mothercare shares fell by almost 10% to 18.09p in early trading on Monday as the company confirmed it would tap shareholders for cash.Mothercare shares fell by almost 10% to 18.09p in early trading on Monday as the company confirmed it would tap shareholders for cash.
Like other household names on the high street, the company has been battling weak consumer spending and a shift to online shopping, as well as increasing competition in the toy and kidswear market. Toys R Us and Maplin are among the chains that have gone into administration, with the loss of thousands of jobs.Like other household names on the high street, the company has been battling weak consumer spending and a shift to online shopping, as well as increasing competition in the toy and kidswear market. Toys R Us and Maplin are among the chains that have gone into administration, with the loss of thousands of jobs.
Shoppers are deserting the high street in greater numbers than during the depths of the recession in 2009, the latest footfall figures from the British Retail Consortium and Springboard suggest. They tallied with a 2% drop in consumer spending last month, according to Visa’s consumer spending index, which has recorded declines in 11 of the past 12 months.Shoppers are deserting the high street in greater numbers than during the depths of the recession in 2009, the latest footfall figures from the British Retail Consortium and Springboard suggest. They tallied with a 2% drop in consumer spending last month, according to Visa’s consumer spending index, which has recorded declines in 11 of the past 12 months.
Mothercare, which has an £80m hole in its pension pot, has been in discussions with its lenders, Barclays and HSBC, since March, when it revealed it was on course to breach the terms of its bank loans and needed extra cash to fund an overhaul of the business. The company is also considering a company voluntary arrangement (CVA), a form of insolvency used to close unprofitable stores and drive down rents, to speed up store closures. Mothercare, which has an £80m hole in its pension pot, has been in discussions with its lenders, Barclays and HSBC, since March, when it revealed it was on course to breach the terms of its bank loans and needed extra cash to fund an overhaul of the business.
The company is also expected to announce a company voluntary arrangement (CVA), a form of insolvency used to close unprofitable stores and drive down rents, to speed up store closures.
Mothercare started shutting stores four years ago and has reduced its UK portfolio from 220 to 137, with a target of 80-100 as sales move online. It is also refurbishing remaining outlets.Mothercare started shutting stores four years ago and has reduced its UK portfolio from 220 to 137, with a target of 80-100 as sales move online. It is also refurbishing remaining outlets.
Britain’s biggest carpet retailer Carpetright is also using a CVA to close 92 stores, with the potential loss of 300 jobs, and negotiate rent reductions of up to 50% with landlords. Britain’s biggest carpet retailer Carpetright is also using a CVA to close 92 stores – with the potential loss of 300 jobs – and negotiate rent reductions of up to 50% with landlords.
MothercareMothercare
Retail industryRetail industry
newsnews
Share on FacebookShare on Facebook
Share on TwitterShare on Twitter
Share via EmailShare via Email
Share on LinkedInShare on LinkedIn
Share on PinterestShare on Pinterest
Share on Google+Share on Google+
Share on WhatsAppShare on WhatsApp
Share on MessengerShare on Messenger
Reuse this contentReuse this content