The company Mothercare to close about 50 of their 137 stores by June next year, with a possible loss of about 800 jobs after the owners approved a financial aid package on Friday.
Clive Check-in, interim Executive Chairman of the struggling baby goods retailer, said that the deal is “an important step forward to achieve updated and stable financial structures for business that will stimulate the acceleration of the transformation of the line”.
UK production recovered in may, but is hiding weakness
Closures are another blow for the troubled streets across the country, which are facing an unprecedented departure from the household names struggling to adapt to changing consumer habits and the economic downturn.
A squeeze on customers, the result is inflation on basic necessities, including food and travel in a period of low wage growth, combined with a switch to online purchases and the acquisition of experience rather than physical items to make life difficult for traditional traders.
Marks and Spencer said it plans to close at least 100 stores by 2022, toys R US UK closes all its 80 stores after busting in February, while the fashion chain new look and flooring specialist carpetright website close dozens of stores as they fight for survival.
However, the mattress buyers in London, told the Guardian that the chain also lost its edge in the face of new competition from the supermarkets and rivals such as the following, and the opportunity to sell second hand clothes on the Internet through sites such as Facebook or eBay.
“It’s old-fashioned, Grumpy and a bit like a supermarket presentation, just no Wow factor. They just held onto their reputation for so long, but not to keep up with the times,” Siobhan Kane, full of Mama, said.
Laura WinGate, with her five-month-old son, she said she was not impressed with the customer service, and stores can be difficult to negotiate with a stroller.
“Kapris is good quality is the most important, but compared to other places not on the ball,” she said.
On Friday, more than three-fourths of the independent creditors, nice for children’s skin, including landlords and suppliers support the company voluntary agreement of the retailer (CVA) plan, a form of insolvency that allows retailers to close unprofitable stores and lower rents.
Under Internet website Mothercare asked 65% reduction in rent for 49 shops, which is scheduled to close by June of next year, and said it would be half of the rent for 21 points.
The next stage of the plan for the survival of the group include Mothercare to raise £28m from the shareholders, the terms of its provision of £67.5 m in borrowings to support current operations.
Check said, “We are very grateful for the support of our many stakeholders from our database of the creditor in support of the current proposals of the CVA. Their patience and support today is an important step forward to achieve updated and stable financial structures for business that will stimulate the acceleration of the transformation of the line.
“These measures provide a strong platform to move the group and begin to focus on growth, both in the UK and at the international level”.
Securing an agreement on reducing the rent and closing the store, despite fears to push back from homeowners who are faced with a series of kvass in recent months.
New look, carpetright website and restaurant chains, Carluccio Byron, hotel and Jamie’s Italian have used the process to lose unwanted outputs.
House of Fraser is expected to soon announce details of a restructuring in which at least 20 stores closed and the third group.
Subscribe for daily business today email or follow the business Guardian on Twitter @BusinessDesk
This process is facing a potential delay amid wrangling with creditors and landlords on the conditions. There are fears that the process could collapse like house of Fraser is attempting to negotiate a deal at least two weeks prior to its next quarterly invoice for rent on 24 June.
Charlotte Coates, a restructuring specialist at estate consultancy firm jll, which works with consultancy Begbies Traynor to advise the group house of Fraser, the owners, said they want more transparency in relation to the terms of the transaction.
Problem landlord to come as they face a potential future of kvass in the coming months.
Hilco, the new owner of Homebase, is understood to be planning to close about 60 stores, DIY network, in accordance with the restructuring plan, expected to be implemented during the summer. The owner of a private PoundWorld capital, TPG, is also weighing a CVA, if he is unable to find a buyer for a discount chain.
A list of proposed line store closed
The list below comes from the information in the document was leaked seen guardian.
Bangor, Northern Ireland
Brixton, South London
Colliers Wood, South London
Crystal Peaks, Sheffield
Denton, Greater Manchester
Eltham, South London
Fort Kinnaird, Scotland
Grafton Centre, Cambridge
Harrogate, North Yorkshire
Holloway road, North London
King’s Lynn, Norfolk
Londonderry, Northern Ireland
Newport, Isle Of Wight
Rotherham, South Yorkshire
Stockport, Greater Manchester
Walsall, West Midlands
Wandsworth, South London
Worthing, West Sussex