Mothercare mulls CVA, 40 stores under threat of closure

By

Barbara Santamaria

Published
Apr 10, 2018

Maternity retailer Mothercare is reportedly eyeing the closure of more than 40 stores across the UK under in a bid to save its struggling business.

The British company is one of many at risk of going bust in the face of weakening consumer demand, higher costs and a shift towards online shopping.

The challenging conditions have prompted Mothercare to explore an insolvency process known as company voluntary agreement or CVA, which would help it close lossmaking stores and renegotiate rents, reported the Sunday Times.

A third of the brand’s 143 stores could be at risk of closing down.

KPMG is already advising the company on an emergency refinancing, and is expected to help it as it moves forward with its CVA plans.

The embattled business was hit by a worrying 6.9% decline in online sales during the Christmas period. CEO Mark Newton-Jones was ousted abruptly last Wednesday and replaced with David Wood.