Mothercare has said it will close 60 stores by June 2019 – up from the 50 previously earmarked – as part of the struggling retailer’s refinancing and restructuring plans.
This will leave it with a continuing UK store estate of 77 stores for Mothercare as a whole by June 2019, with 19 of those stores on reduced rent.
It has also placed its Children’s World business into administration, which will result in the transfer of 13 of its 22 stores to other Mothercare group companies to continue trading.
Mothercare also confirmed plans to raise another £32.5m from its existing shareholders by issuing new shares.
Clive Whiley, interim executive chairman, said: “ Whilst the lack of full approval for the Children’s World CVA was disappointing, we have now found a solution which allows us to go further and faster with the right-sizing of our store portfolio. We have also identified significant areas for further efficiencies and cost savings, which will underpin our return to a sustainable future.”
It has been an unprecedented period for UK retail this year, with a spate of closures announced by multiple high-profile companies. Last month, John Lewis announced that it is set to close five Waitrose stores, including two in London.
Also in June, House of Fraser announced a plan to avoid a collapse involving the closure of 31 of its 59 department stores including its Oxford Street branch in London.
Other retailers and restaurant groups to unveil closures this year include Mothercare, Carpetright, New Look, Prezzo and Jamie’s Italian.
Which stores are closing in YOUR town?
Earlier this month, retail veteran and former Iceland boss Bill Grimsey released his second independent report into what needs to be done to revitalise the UK’s high streets, which includes the creation of a new town centre commission.
Industry figures welcomed the report on how to revive the UK’s high streets. However, some said aspects of the report were “out of touch” and “too simplistic”.
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