The creditors of the difficulty of the mother and baby products retailer Mothercare have supported a restructuring plan that will lead to the closure of 50 stores.
The closures put 800 jobs at risk are part of a company voluntary arrangement (CVA), which allows companies to close down loss-making stores and reducing rents.
Under the CVA, Mothercare will also raise 28 million pounds through the issue of new shares.
The company said that it continued to trade and was not going to be the administration.
Last month, Mothercare said it was in a “perilous” financial situation, and has confirmed that his rescue plan would involve the closure of 50 stores.
The store closures will leave with 78 points of sale in the UK by 2020. It is not yet clear which stores the closure.
Clive Whiley, Mothercare’s interim executive chairman, said: “We are very grateful for the support of our many stakeholders across our creditor base in support of today’s CVA proposals.
“These measures provide a solid platform from which to reposition the group, and to begin to focus on growth, both in the UK and abroad.”
The retailer already has nearly half of its store numbers over the past five years. He had had the intention of having 92 points-of-sale by 2023, but it has accelerated its plans to close and does have that’73 this year.
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The company plunged to a £72.8 m loss for its most recent fiscal year, it took heavy charges to pay for the closing of stores and the reorganization of the company.
Mothercare saw the decline in the number of customers in the second half of the year and has had to discount to try to boost sales. However, on the whole of the year, as sales fell 1.3%.
Bce has extended to this year as a wave of large Street names have had to undergo profound changes in the way they operate.
Earlier this year, the toy store chain Toys R Us has collapsed into administration, as did electronics retailer Maplin.
Carpetright has entered into a CVA, and announced closures of stores, the fashion chain New Look.
A number of reasons have been cited for failures on the High Street, including a squeeze on consumer income, the growth of online shopping and the increase in staff costs, rents and business rates.