800 jobs at risk as Mothercare prepares to axe 50 stores
Archant Norfolk 2015
Mothercare has been given the green light to swing the axe on 50 underperforming stores in a move that will see 800 jobs put at risk.
The store closures will be carried out through a company voluntary arrangement (CVA) – a move which allows companies to close loss-making shops and secure rental discounts.
On Friday, Mothercare said it had received the backing of creditors to press ahead with the CVA.
Clive Whiley, Mothercare’s interim executive chairman, said: “We are very grateful for the support of our many stakeholders across our creditor base in supporting today’s CVA proposals. Their forbearance and support today is a crucial step forward to achieve the renewed and stable financial structure for the business that will drive an acceleration of 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.”
The company, which has shops in Norwich, Ipswich and King’s Lynn, has not named which underperforming stores are facing the chop.