Mothercare has appointed KPMG to advise on its refinancing as it seeks waivers of some of its financial covenants and attempts to raise more cash.

The specialist retailer revealed that it had fallen into difficulties earlier this month following media speculation about its financial health and a fall in its share price.

KPMG is understood to have been drafted in several weeks ago.

A spokesman for Mothercare said: “We are working with our financing partners with respect to our financing needs for [fiscal year 2019] and beyond.

“We are also exploring additional sources of financing to support and maintain our transformation programme. All of these discussions are ongoing and we will update the market on developments as required.”

The retailer said at the beginning of the month that its “trading and financial performance has remained broadly in line with the board’s expectations”.

Net debt at year-end is now expected to be “slightly better than the £50m previously guided”, while profits will be “at the lower end of the previously guided range of £1m to £5m.”

Many high street outfits are going through torrid times at the moment, with Carpetright mulling a CVA and New Look bondholders voting on a proposed CVA this week.