Mothercare’s fresh chief executive David Wood is poised to expose the troubles it faces amid its annual results next Thursday.
Analysts are expecting the embattled retailer to post a massive 95 per cent drop in pre-tax profits to £1 million, down from £19.7 million a year earlier.
Woods, who was drafted to succeed Mark Newton-Jones after he was forced out last month, is expected to update shareholders and creditors on its refinancing progress.
Sources told the Retail Gazette that the board was not happy with the progress Newton-Jones was making in its turnaround.
Just weeks later, non-executive chairman Alan Parker jumped ship from Mothercare, with Clive Whiley filling his shoes on an interim basis.
It has enlisted the help of KPMG to help it secure more funding from its lenders HSBC and Barclays, as well as Rothschild to secure further funding from other sources.
Although it has not yet confirmed its emergency turnaround strategy, it is understood that a CVA is the most likely option, which could see it close up to a third of its estate and secure rent reductions on dozens more.
“Mothercare clearly faces a number of challenges at this time but retains an excellent and still relevant brand in our view,” Shore Capital’s Clive Black said.
“The new senior management team is now focused upon the previously announced refinancing initiatives whilst also seeing through the ongoing business transformation.”
Click here to sign up to Retail Gazette‘s free daily email newsletter
