Hertfordshire-based Mothercare confirms plans to close 50 stores

Hundreds of jobs are at stake as the retailer plans 50 store closures

Hundreds of jobs are at stake as the retailer plans 50 store closures

The company has not announced which stores will close, but has confirmed 800 jobs throughout the United Kingdom will be affected. Mothercare has 13 stores in the region: Manchester Fort, Crown Point Denton - which has already lost its M&S Outlet this year - Stockport, Macclesfield, Altrincham, Warrington, Blackburn, Prescot, Preston, Aintree Racecourse Retail Park, Bromborough, Chester and Llandudno. It will have just 78 by 2020, down to 72 two years after that.

The company hopes that the shake-up will prevent it from falling into administration - but has not yet specified which stores will close.

"Of course we regret having to close stores and the impact this will have on colleagues".

"Retailers considering a CVA should also be aware that it is not always possible to save the business from entering into administration and total closure, as happened in the case of Toys R Us".

The company also said it would reappoint Mark Newton-Jones, the chief executive who left in April following a profit warning.

Newton-Jones' replacement as CEO David Wood, a former Tesco executive, will become group managing director.

This is made up of a proposed equity capital raising of £28m expected to be launched in July 2018, a revised committed debt facilities of £67.5m, new £8m shareholder loans from certain of the company's largest shareholders and a new debtor-backed facility of up to £10m from one of the company's trade partners.

The shake-up aimed at restoring the fortunes of the chain are likely to result in hundreds of job losses.

Mothercare declined to elaborate on a statement it issued on Monday, in which it said it was "finalising a comprehensive restructuring and refinancing package to put the business on a stable and sustainable financial footing".

"However, there remains much to do and we must maintain a disciplined focus on cost control and cash generation throughout the business, but these measures provide a solid platform from which to reposition the group and begin to focus on growth, both in the United Kingdom and internationally".

A number of reasons have been cited for failures on the High Street, including a squeeze on consumers' income, the growth of online shopping and the rising costs of staff, rents and business rates.

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