Creditors including landlords of 60 Mamas & Papas shops have voted in favour of a Company Voluntary Arrangement for the business.
The CVA, which was overseen by Deloitte, relates to Mamas & Papas (Retail) Limited, the company which operates Mamas & Papas’ UK stores. Other companies in the group are unaffected.
Mamas & Papas (Retail) will now continue its dialogue with landlords to implement the CVA proposals, which include plans to reduce rent on certain stores in the UK retail business.
Mamas & Papas (Retail) chairman David Scacchetti said: “The proposals agreed today not only enable us to cut costs and ensure a profitable retail portfolio, but will also create a platform to allow us to continue offering innovative, premium products to customers in the UK and internationally, both in stores and online.”
The CVA agreement comes a month after retail executive Derek Lovelock was appointed interim chief executive of the group.
