Mothercare’s creditors have approved the troubled retailer’s plans to shutter 50 stores and slash rents through a company voluntary arrangement (CVA).
However, creditors can apply to court to challenge the CVA until June 29.
Mothercare, which stunned the market by reappointing Mark Newton-Jones as boss merely a month after he was ousted, is also placing new shares at 19p each in a bid to raise £28m.
The business said it expects the fundraising to complete in July.
Mothercare interim executive chairman Clive Whiley said: “We are very grateful for the support of our many stakeholders across our creditor base in supporting today’s CVA proposals.
“Their forbearance and support today is a crucial step forward to achieve the renewed and stable financial structure for the business that will drive an acceleration of Mothercare’s transformation.
“These measures provide a solid platform from which to reposition the group and begin to focus on growth, both in the UK and internationally.”
A tranche of retailers including New Look, Carpetright and Select have launched CVAs since the turn of the year as high street chains grapple to right-size their store estates and reduce property costs.
House of Fraser is expected to launch a CVA of its own in the coming weeks, while a host of other businesses are thought to be mulling similar moves.
The department store chain’s plans sparked a backlash from the British Property Federation, while its high street neighbour Next has begun approaching landlords about having “CVA clauses” inserted into their lease agreements.