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"Underperforming" Guildford and Aldershot Mothercare's to shut

3 minute read
"Underperforming" Guildford and Aldershot Mothercare's to shut

Published by the Eagle Radio News Team at 4:14pm 1st June 2018. (Updated at 4:16pm 1st June 2018)

Mothercare has been given the green light to axe stores in Guildford and Aldershot.

It's part of the retailers plans to close under-performing stores in a move that will see 800 jobs put at risk.

On May 18, the baby care chain confirmed 50 stores across the UK would shut. 

According to the document, tweeted by Scottish company Ditchfield Property, branches in our area are among those shutting. 

There is also a store in Weybridge - but that one isn't on the list. 

The shops will close over the next 12 months.

Mothercare said it had received the backing of creditors to press ahead with the company voluntary arrangement (CVA).

This will allow the chain to close loss-making shops and secure rental discounts.

Mothercare currently employs about 3,000 people across 137 outlets and the shake-up is aimed at restoring the fortunes of the chain.

The wide-ranging restructuring plan will also see Mothercare bag a refinancing package worth up to £113.5 million.

The changes will see Mark Newton-Jones return as chief executive just two months after he left the retailer.

David Wood, the man brought in to replace him, will become managing director.

Mothercare, which has been trading since 1961, said it was facing a "perilous financial condition" and had identified a large number of loss-making stores.

The plans came as the company reported a £72.8m pre-tax loss for the year to 24 March, compared to a £7.1m profit a year before - dragged into the red by costs such as restructuring, store closures and writedowns in the value of parts of the business.

Clive Whiley, Mothercare's interim executive chairman, 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."

Since January, Toys R Us and Maplin have filed for administration, while fashion retailers such as New Look have embarked on radical store closure programmes.

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