Mothercare subsidiary Childrens World has seen proposals for a company voluntary arrangement (CVA) rejected by shareholders, plunging over 300 jobs into doubt.
Following the approval of Mothercare UK’s CVA last week, which is set to see 49 stores closed and rents reduced on the rest, plans for a similar strategy for Childrens World were thwarted.
Creditors were required to vote separately on the larger group’s three subsidiaries, including Mothercare UK, Early Learning Centre and Childrens World, which accounts for 21 of the group’s 152 stores and employs 331 people.
Though both Mothercare UK and Early Learning Centre managed to receive more than the threshold 75 per cent approval, Childrens World fell just short with 73.3 per cent.
“The CVA Proposals and/or any restructuring of Childrens World are not expected to affect the ordinary course of operations of Mothercare, which continues to trade as a going concern under the control of its directors,” Mothercare stated.
It added that this would not impact the ongoing transformation or refinancing plans, and it will now consider all options for the business including closure, which it acquired from Boots in 1996 and rebranded into Mothercare World stores.
The announcement sent shares dropping 6.3 per cent after rallying nearly 90 per cent on news of the CVA plans.