Mothercare subsidiary Childrens World fails to get CVA approval
Following its recent announcement that it had secured the backing of creditors to proceed with its proposed Company Voluntary Arrangement, Mothercare has now said that scrutiny of the voting documentation has revealed that plans for Mothercare subsidiary Childrens World failed to be approved by the required 75% of creditors.
As a result, the Childrens World CVA proposal will not progress any further. The CVA proposals for Mothercare UK and Early Learning Centre were passed by clear majorities.
Mothercare said the directors of Mothercare and Childrens World are now considering “all options” in respect of Childrens World as a legal entity.
Clive Whiley, Mothercare interim executive chairman, added: "KPMG have confirmed the votes relating to MUK and ELC CVA's passed by a clear majority, however it is now clear that the CVA of Childrens World was not carried by creditors by a narrow margin. This will neither unsettle the UK restructuring and refinancing nor jeopardise our future transformation plans, which are already underway.”
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