Rain

Rain

max temp: 16°C

min temp: 11°C

Search

800 jobs at risk as Mothercare prepares to axe 50 stores

PUBLISHED: 09:09 17 May 2018 | UPDATED: 09:09 17 May 2018

Mothercare is to close 50 stores and re-hire it's former chief executive, Mark Newton Jones, who was sacked just weeks ago. Picture: Martin Rickett/PA Wire

Mothercare is to close 50 stores and re-hire it's former chief executive, Mark Newton Jones, who was sacked just weeks ago. Picture: Martin Rickett/PA Wire

Struggling children’s retailer Mothercare has unveiled plans to axe 50 stores across the UK with 800 jobs at risk.

The company, which has stores in Norwich, Ipswich, Clacton-on-Sea, Chelmsford and King’s Lynn, has refused to name specific stores until staff have been informed and said it had no alternative but to restructure.

The closures, which will result in hundreds of job losses, will be carried out through a company voluntary arrangement (CVA) – a move which allows companies to close loss-making shops and secure rental discounts.

READ: Special report – Call to support the high street as store openings fall to lowest level for seven years

Mothercare employs about 3,000 people across 137 outlets.

In a move that will stun many observers, Mark Newton Jones, who was given the elbow as chief executive last month, will return to the fold and once again take the top job.

The man that had been brought in to replace him, David Wood, will now become managing director.

As part of the restructuring, Mothercare also announced a refinancing package worth up to £113.5m.

It comprises £28m through an equity capital raising, an extension of its existing debt to £67.5m, £18m in shareholder and trade partner loans.

Chairman Clive Whiley said: “The recent financial performance of the business, impacted in particular by a large number of legacy loss-making stores within the UK estate, has resulted in an unsustainable situation for the Mothercare brand, meaning the group was in clear need of an appropriate resolution.

“These comprehensive measures provide a renewed and stable financial structure for the business and will drive a step change in Mothercare’s transformation.

“These measures provide a solid platform from which to reposition the group and begin to focus on growth, both in the UK and internationally.”

Retailers across the board have been battered by weak consumer confidence off the back of soaring Brexit-fuelled inflation.

They have also had to contend with surging wage costs and eye-watering business rate hikes.

Since January, Toys R Us and Maplin have filed for administration while fashion retailers such as New Look and Select have embarked on radical store closure programmes.

Search hundreds of local jobs at Jobs24

Jewellery and accessory store Claire’s is considering closing a number of stores, it has been revealed.

A large-scale investigation has been launched into an Ipswich-based financial company

The LV18 lightship, the last working light ship, will switch on its beacon and light up Ipswich Waterfront.

Clothing brand Superdry has warned that its full year performance will be impacted by the warm weather this summer, as well as additional foreign exchange costs.

Adventurous Suffolk couple are seeking £200,000 funding to launch their camping invention - the LayBakPak.

Management Jobs

Show Job Lists

Most read

Topic pages

Newsletter Sign Up

Sign up to the following newsletters:

Sign up to receive our regular email newsletter

Our Privacy Policy

MyDate24 MyPhotos24