Mamas & Papas looks to reduce rent bill with CVA
Mamas & Papas is looking to reduce its rent bill for its UK stores through a company voluntary arrangement.
The moves follows a strategic review launched earlier this year by the struggling nursery brand and the appointment this month of former Karen Millen and Aurora Fashions chairman Derek Lovelock as interim chief executive.
Mamas & Papas, which has recently received investment from private equity group BlueGem, has put proposals to the landlords of 60 of its UK stores via a CVA overseen by Deloitte.
At the same time, the company has begun a consultation process with staff to achieve cost savings. According to reports, between 50 and 90 staff could face redundancy.
David Scacchetti, chairman of Mamas & Papas, said: “While our international and wholesale businesses are performing strongly, the UK retail environment is the toughest I’ve experienced in the 30 years since we founded Mamas & Papas and it has become clear that we need to take action if we are to maintain our proud position as a brand trusted by parents across the world.
“We believe the proposals announced today will create a platform to allow us to continue offering innovative, premium products to customers in the UK and internationally, both in stores and online.
“Alongside the investment from BlueGem, the strengthened leadership team and the support of our colleagues, we are confident we are taking the steps necessary to protect the Mamas & Papas brand and help it to achieve its potential in the future.”
Landlords of the Mamas & Papas stores will vote on the terms of the CVA at a meeting on 10 September.
