Mothercare to shut 60 stores after raising £32m for turnaround plan

Mothercare has lived to fight another day after launching a deeply discounted £32.5 million rights issue and increasing the number of stores it will close to 60. The baby and maternity retailer said that the fully underwritten capital-raising, the shop closures and revised debt facilities of £67.5m would provide it with the financial stability to turn around the long-struggling brand. Mothercare is one of the biggest maternity and children’s retailers in Britain, holding a 40% market share of the pushchair market. The Telegraph reports that the newly reinstated boss of Mothercare has defended the decision to put another 100 jobs at risk as he accelerates plans to shut dozens of shops in a desperate attempt to keep the ailing retailer afloat. Mark Newton-Jones, who was sacked as chief executive in April but rehired the following month, said Mothercare needed to close 60 of its 137 UK stores by next summer as it battles against a “brutal” downturn afflicting Britain’s high streets. Mothercare’s shares fell 9% in early London trade to 26p according to the FT. Click here for the Times article (£) Click here for the full Telegraph article (£) Click here for the full Independent article Click here for the full Guardian article Click here for the full FT article (£)