Mothercare is set to tap up investors to bolster its restructuring plan with the launch of equity share placing alongside its full-year results this week.
The beleaguered specialist retailer will reportedly ask for additional funding from its existing shareholders in the regions of tens of millions of pounds, according to The Telegraph.
The chain, which will post its full-year results this Thursday, is also expected to unveil plans for a Company Voluntary Arrangement (CVA), which could see it close up to a third of its 143-strong UK store estate.
According to Sky News, Mothercare’s revival plan will also require the support of the Pensions Protection Fund (PPF), which has drafted in advisers from PricewaterhouseCoopers (PWC) ahead of the retailer’s full-year results.
The PPF will have the largest vote in the baby equipment chain’s prospective CVA.
The retailer has drafted in Rothschild to explore financing options beyond its current lenders, while KPMG is overseeing discussions with HSBC and Barclays over its existing debt.
Mothercare’s chairman Alan Parker and chief executive Mark Newton-Jones both exited the firm last month, with the latter succeeded by former Kmart and Tesco executive David Wood.
The specialist retailer said: “Mothercare continues to explore a number of options in relation to the group’s financing which will allow us to support and maintain the momentum of our transformation programme.”
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