Mothercare flies in Rothschild as it scrambles to secure emergency funding

1657

Mothercare has ramped up its search for emergency funding, expanding its reach to alternative financing options ahead of its full-year results in May.

According to The Sunday Telegraph, Mothercare has drafted in the help of investment bank Rothschild to aid its search for investment.

Though it has already enlisted the help of KPMG to handle discussions with HSBC and Barclay’s over its debt obligations, Rothschild is understood to be reaching outside of the retailer’s current lenders to secure a cash injection.

It is aiming to find the funds before May 17 when Mothercare is due to reveal its full-year financial results.

This past few weeks have seen Mothercare oust two senior figures including its chief executive Mark Newton-Jones, with sources telling the Retail Gazette that the board was not happy with the progress he was making in its turnaround.

Non-executive chairman Alan Parker also jumped ship from the struggling retailer in mid-April, just weeks after it was revealed that the retailer was mulling a company voluntary arrangement (CVA) in which it could shutter up to 47 of its 143 store-estate.

Although a transformation plan was launched under Newton-Jones, Mothercare has been struggling since 2017, when it reported losses of £700,000 in its interim results.

Click here to sign up to Retail Gazette‘s free daily email newsletter

 

LEAVE A REPLY

Please enter your comment!
Please enter your name here