Mothercare CVA imminent
Faltering infant and baby retailers confirms restructuring and refinancing rumors
Mothercare has confirmed it will unveil a restructuring plan in the form of a CVA alongside its full-year earnings report later this week, according to The Telegraph.
Alongside a CVA plan – the same lifeline Toys R Us initially pursued to keep it out of official administration proceedings – reports suggest the infant and baby retailer is expected to tap investors for a major cash injection of tens of millions of pounds.
A statement released by Mothercare today reads: "In light of recent speculation and further to the announcement of 2 March 2018, Mothercare plc announces that it is now finalising a comprehensive restructuring and refinancing package to put the business on a stable and sustainable financial footing.
"We are in the final stages of detailing these restructuring plans alongside new committed debt facilities, an underwritten equity issue and access to other sources of capital which we intend to announce with our final results, which are expected to be published on 17 May 2018. A further announcement will be made in due course."