Investors welcomed an emergency lifeline that creditors handed to Mothercare but questioned whether the retailer would be able to revamp its prospects.
Shares in the children’s goods chain rose by almost a quarter on widespread relief about the details of the financial package and its pledge to slash costs by cutting 50 shops.
Concerns were raised, though, about Mothercare’s ability to solve its perennial problems of rising costs and intense competition from online retailers and supermarkets. Its shares have fallen by 83% over the past year.
Efforts to bring down its 137-strong UK store estate to around 87 stores and secure rent reductions on a further 21 sites will be pursued through a Company Voluntary Arrangement (CVA) according to the Telegraph.
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Click here for the full Telegraph article
