Mothercare hoping for waivers to finance terms

Retail chain Mothercare has appointed KPMG to advise on a refinancing of the firm as it holds talks with lenders.

The group is looking to secure waivers to its financial covenants as it looks at “additional sources of financing”.

Details of the appointment come amid mounting speculation that it may yet breach the terms of its banking agreements.

Mothercare’s lenders include HSBC and Barclays.

The group has been hammered on the stock market after warning over profits twice since the start of the year and revealing that talks with its banks were under way.

Mothercare’s outlet in Dundee.