Mothercare has ruled that a management buyout was “100 per cent not” an option in the future, just days after it launched its CVA and posted plunging annual profits.
The news, as reported by Reuters, comes after Bloomberg first reported that chief executive Mark Newton-Jones had proposed taking the struggling maternity retailer private one year before his departure in April.
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He was re-hired for the top job last week after he was ousted by the board in late April.
Mothercare said in a statement that “at certain points the board considers various strategic options available to the company.
“However, no specific plans were drawn up in relation to a management buyout.”
Mothercare’s for full year ending March 24 last week featured £72.8 million in pre-tax loss, compared to a £7.1 million profit in 2016/17.
Mothercare said this loss came about from a raft of restructuring and closure costs, as well as store asset impairments and onerous leases.
Meanwhile, total sales fell 1.9 per cent to £654.5 million and net debt was lower at £44.1 million.
The figures were revealed on the same day Mothercare launched a company voluntary arrangement (CVA), which includes plans to shutter 50 stores and slash around 800 jobs as part of a wide-ranging restructure to keep the business afloat.
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