Leader: Will Mothercare administration signal death knell for CVAs?

mothercare

As recently as May, having won approval for a CVA last year, Mothercare chief executive Mark Newton-Jones was bullish about the retailer’s turnaround prospects.

He said as he unveiled full-year results: “We have achieved a huge amount this year, refinancing, restructuring and reorganising Mothercare to ensure a sustainable future for the business. The majority of that work is now done.”

“What a difference a year makes,” enthused chair Clive Whiley. He said: “We remain determined to differentiate Mothercare as a textbook recovery case, in parallel demonstrating that boards can and should foster a greater alignment between their debt and equity providers.”

Up to a point, Lord Copper.

It now looks, sadly, as if they were wearing rose-tinted glasses. Mothercare’s UK business is now expected to be put into administration with the potential loss of 2,500 jobs.

Subscription content

Please sign in now if you have a subscription

Retail Week

Register to continue reading

Retail-Week.com provides premium, in-depth intelligence that helps retailers judge risks, spot opportunities and identify what they need to do to win in the digital economy.

Register today for a taste of our high-quality intelligence and enjoy:

  • 3 free articles a month on Retail-Week.com
  • Detailed analysis of current trends and events 
  • Exclusive newsletters
  • In-depth reports, videos, interviews and much more

Discover Retail Week register now

Please note, if you have recently purchased a subscription, it may take a few minutes before your account is updated.