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Mothercare CEO departs after closure of UK stores

"The risks to achieving the outcomes we laid out in November are increasingly dissipated."

Mothercare PLC -

 

Mothercare PLC (LON:MTC) chief executive Mark Newton-Jones is to leave the struggling babywear retailer, while Clive Whiley is to become non-executive chairman.

The pair have overseen a drastic strategy for the chain that last week resulted in all 79 of its UK stores close after being put into administration.

Whiley said: We have made good progress with the Transformation Plan and the risks to achieving the outcomes we laid out in November are increasingly dissipated.

“Our plans for the final steps of the recapitalisation of the Group are in hand and whilst the cash realisation from the Mothercare UK administration was lower than anticipated, the progress that we have made elsewhere means that the financing requirement overall is unchanged from our original plans.”

Mothercare said today it faces a £10mln liability from the administration of its UK shops as sales of stock have not been sufficient to cover £24mln of loans outstanding.

CFO Glyn Hughes has taken over as interim chief executive though Newton-Jones will oversee the final stages of the transformation plan.

The babywear retailer closed its UK outlets as part of a last-ditch rescue plan that will saw its focus switch to its international business.

A franchise deal has was agreed with Boots, but has yet to be finalised.

Talks over a debt refinancing are also underway, with a £25mln working capital currently being provided by a trade partner.

Shares fell 9% to 15.2p.

 

Quick facts: Mothercare PLC

Price: 12.6 GBX

LSE:MTC
Market: LSE
Market Cap: £47.15 m
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