The struggling retailer Mothercare is to cut 900 jobs, 100 more than previously announced, as it put its Children’s World subsidiary into administration.
The move comes after landlords rejected the company’s proposals for rent reductions for Children’s World stores last month. Mothercare will now close 60 of its 137 stores, 10 more than it said in May. These will be carried out through a company voluntary arrangement (CVA), which allows firms to shut loss-making shops and secure rental discounts.
It expects to make annual savings of about £10m with the closures, and plans to raise £32.5m from existing shareholders through a rights issue.
Clive Whiley, the group’s interim executive chairman, said: “Whilst the lack of full approval for the Children’s World CVA was disappointing, we have now found a solution which allows us to go further and faster with the right-sizing of our store portfolio. We have also identified significant areas for further efficiencies and cost savings, which will underpin our return to a sustainable future.
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