Mothercare creditors have approved the retailer's proposals for a company voluntary arrangement that will enable it to shut 50 of its 137 shops and force through rent reductions on 21 others.
Beleaguered mother and child retailer Mothercare has confirmed the closure of 50 stores, announced a refinancing package and said it was re-hiring chief executive Mark Newton-Jones, who stepped down last month, as it swung to a full-year pre-tax loss.
Beleaguered mother and child retailer Mothercare announced the departure of chairman Alan Parker on Thursday, hot on the heels of the appointment of a new chief executive earlier this month.
A fourth quarter update from mother and baby retailer Mothercare on Thursday showed a slowdown in the company's declining sales, while the online segment returned to growth against a still-challenging backdrop.
Retailer Mothercare, which announced mid-March that it had been given a little breathing space by its lenders, has appointed David Wood as its new chief executive officer with immediate effect, as Mark Newton-Jones steps down.
Shares in Mothercare rallied on Wednesday as the baby and toddler chain got some much-needed breathing space after its lenders agreed to defer the testing of its financial covenants due on 24 March.
Mothercare has begun talking to its lenders and investors as borrowings are expected to breach bank limits in coming months, with profits likely to come in at the lower end of previous guidance.
Toys R Us went into administration on Wednesday after failing to secure a rescue deal, while electronics retailer Maplin collapsed as talks with a potential buyer broke down.
Mothercare: JP Morgan downgrades to underweight with a target price of 40p.
Mark Newton-Jones, chief executive officer of children's retailer Mothercare, picked up 218,866 ordinary shares in the firm on Tuesday at a price of 45.69p per share.
JPMorgan Cazenove downgraded Mothercare to 'underweight' from 'neutral' and slashed the price target to 40p from 82p on weak UK trading following the retailer's profit warning on Monday.
Retailer Mothercare has warned that profits are likely to be less than half the level expected as management held off from discounting as long as possible despite challenging UK and international trading.
Analysts at Canaccord cut their 2018 pre-tax profit forecast for Mothercare by 43% on Friday to £12.0m, reassessing their estimate for losses from its UK business from £500,000 to £7.8m.
Mothercare was under the cosh on Thursday after saying it swung to a loss in the first half of the year amid challenging international markets, as it warned of a "softening" in the UK.
Ultra Electronics: Berenberg downgrades to Sell with a target price of 1550p.
Mothercare reported a rise in first-quarter UK sales, but the performance of its international business was less impressive, dented in particular by weakness in the Middle East.
Mothercare: Berenberg upgrades to Hold with a target price of 130p.
Analysts at Berenberg upgraded their recommendation on shares of Mothercare from 'sell' to 'hold' after its UK arm moved past breakeven and ahead of an expected boost to its foreign operations from a weaker pound.
JD Wetherspoon: Citigroup downgrades to Neutral with a target price of 1030p.
Mothercare reported a drop in fourth-quarter and full-year sales on Thursday, mostly due to a weaker performance in the international business.