Mothercare plc (LON:MTC) is considering closing 47 loss-making stores and renegotiating rents for its remaining estate, as the maternity products retailer struggles to survive on the High Street.
According to The Sunday Times, the FTSE SmallCap firm could shut around 47 of its 143 stores throughout the UK by entering a company voluntary agreement (CVA), which would allow to repay its debts.
READ: Mothercare brings in former Tesco executive as new CEO
The report comes after Mothercare last week appointed former Tesco PLC (LON:TSCO) man David Wood as its new chief executive officer (CEO) with immediate effect.
Wood, who replaced outgoing CEO Mark Newton-Jones, joined the company from US retail and pharmaceutical business Kmart Holding Corp, where he was group president for three years. Prior to that, he was part of with Tesco for eight years, leaving after being managing director of its Health and Wellness division from 2014 to 2015.
READ: More retail misery: Mothercare in talks with financing partners, warns profits at lower-end of guidance
The moves come during an unstable period for the company, which issued a profit warning on 2 March 2018 in which it said it expected full-year profit to be at the low end of reduced guidance after revealing a disappointing Christmas performance when its UK performance was particularly weak.
Later in the same month, Mothercare said it anticipated a rise in borrowings for the financial year 2019 and noted that lenders had deferred the testing of financial covenants due on March 24.
In early afternoon trading, Mothercare's shares were down 14.7% at 16.72p.