Mothercare will shut 60 stores, 10 more than previously planned, as part of a drastic turnaround plan that could put 900 jobs at risk.
The ailing baby products seller said it now planned to raise £32.5m of emergency funding from investors, up from a previous plan to request £28m.
Mothercare struck a company voluntary arrangement insolvency deal with its landlords and creditors last month but failed to win approval for its proposals concerning a subsidiary, Children's World, which will now be put into administration.
It will transfer 13 Children's Worlds stores to the main business but the rest will be closed in the coming months. That is on top of 50 closures announced alongside the CVA proposals in May.
The new financing will be raised through an issue of new shares at 19p each, well below Mothercare’s close price of 28.6p on Friday.
By Jack Torrance.
Full story at Yahoo News.
No comments:
Post a Comment