Jobs may face axe in Paisley

Jobs in Paisley are under threat after struggling retailer Mothercare announced they would be closing 60 stores by June next year.

Potentially, 900 jobs are on the line across the UK after the chain confirmed that its subsidiary Childrens World has been placed into administration and it will transfer 13 of its 22 stores to Mothercare.

The chain has 13 locations across Scotland, including a store in Causeyside Street, although it has yet to be confirmed if the Paisley shop will be one of the 60 to be axed.

The company had previously said it was planning to close 50 stores by next year but is now looking at deeper cuts following the collapse of their Childrens World division.

Mo t h e r c a r e also announced it is raising another £ 32.5m from shareholders to shore up its finances.

The baby brand has made a rent cut with the landlords of 21 of its stores and as part of the restructuring announced a refinancing package worth up to £113.5 million.

They firm is hoping that the money saved will be able to go towards paying off their debts.

Chief executive Mark Newton-Jones said: “After a very challenging period for our business, we have now finalised arrangements to restructure and refinance the group, ensuring that the transformation of the Mothercare brand we started four years ago can now be completed.

“Mothercare is a great British brand with over 50 years of heritage and we now have the financing in place to take it forward for many more years to come.

“We have seen an unprecedented period for UK retail and we have not been alone in facing a number of strong headwinds.

“I’m pleased to say however, that we are now in a position to re-focus on our customers and improve the Mothercare brand both in the UK and across the globe.

“We have exciting plans ahead to revitalise the brand through enhancing our product ranges.”