Mothercare secures approval for CVA
Mothercare’s proposed Company Voluntary Arrangement proposals have been approved by its creditors.
The CVA includes measures to refinance the business and restructure the UK store portfolio including the closure of 50 stores.
Clive Whiley, interim executive chairman of Mothercare, 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.”
As part of the refinancing, a new equity issue comprising a placing and open offer of new ordinary shares to raise approximately £28 million is expected to complete in July 2018.
Mothercare said the proposals are not expected to affect the ordinary course of operations across the company and stressed that the approval of the CVA meant that it had not entered administration.
Whiley added: “These measures provide a solid platform from which to reposition the group and begin to focus on growth, both in the UK and internationally.”
