Mothercare to close 50 stores with 800 jobs lost as firm fights for survival

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The beleaguered parent and laddie retailer has asked shareholders for £28million as part of a survival method to fight back against further closures and job losses.

The steady failing of Mothercare has seen the number of stores around the UK fall from 400 ten years ago, to proper 137.

And after today’s news, the chain will operate just 73 stockpiles by 2022.

The list of stores set to close have not yet been announced.

Mothercare dues have risen 24 percent on in morning trading to 26.5 pence a ration.

The voluntary move to slash costs will buy Mothercare time to extend trading and dodge adminisration, Simon Underwood, business recovery associate at accountancy firm Menzies LLP said.

He told Express.co.uk: “Allowing a commerce to continue trading and its existing management to retain control, CVAs are again viewed as a more attractive option than other methods of insolvency, such as pre-pack distributions.

«However, if all struggling retailers start taking this route, it could construct matters worse for the ailing High Street – with more shoppers exciting online and creating more empty stores.

«This in turn could pressure local councils to increase business rates to make up for revenue shortfalls.»

Mothercare chairman Clive Whiley answered: «These measures provide a solid platform from which to reposition the bunch and begin to focus on growth, both in the UK and internationally.»

The firm also reinforced today that Mark Newton-Jones had agreed to return as chief number one following his abrupt departure just five weeks ago.

Mr Newton-Jones wishes oversee the firm’s £28 million survival plan with Mothercare also emending committed debt facilities of £67.5million, £8m of new shareholder allows and a new debtor backed facility of up to £10m from a trade partner.

Mothercare’s excuse is another case of a traditional and much-loved bricks and mortar chain flaw to compete with online and discount retailers.

In what has been a bad year for buddies and mortar retails, so far this in 2018 Toys R Us announced plan to nearby a further 75 stores in the UK; Carpetright said that it will fast 92 of its 400 shops; Prezzo pizza confirmed that it wish shut 94 of its 300 restaurants, putting around 500 affairs at risk, and Marks & Spencer announced that 14 stores purposefulness close.

The household favourite has seen sales and profits hammered by sincere competition from supermarket groups and online retailers in its main UK market-place as well as by rising costs.

Over the last year Mothercare’s servings have sunk by 83 percent.

Shoppers and retail experts are unsurprised by the company’s loss.

Frances Bishop owner of children’s shop The Pud Store, said on Peep the news had “been coming for a long time. Heartless stores & inadequate product knowledge. Poor customer service. Overpriced clothing with generic sketch outs”.

Shopper Mike Dixon added: “It seems like large extravagant street retailers are trying to use a successful 90s business structure until the behind minute then realising it’s failing in 2018 and having to panic.”

Others conjectured shoppers were increasingly heading to value chains such as Primark for issues which were of similar quality, adding the brand has become complacent.

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