Mothercare taps investor funds amid restructure

0 The high street stalwart is set to unveil further details alongside this week’s annual results The crisis at Mothercare has deepened after the babywear retailer said it was scrambling for cash from shareholders and outside investors, alongside a sweeping store closure programme.

The chain is widely expected to unveil a restructuring proposal known as a company voluntary agreement (CVA) alongside its annual results on Thursday.

But Mothercare will also tap investors for cash through an equity fundraise, and the business is so desperate for money that it must secure a bridging loan this week.

In a statement, the retailer said: “Mothercare announces that it is now finalising a comprehensive restructuring and refinancing package to put the business on a stable and sustainable financial footing.

“We are in the final stages of detailing these restructuring plans alongside new committed debt facilities, an underwritten equity issue and access to other sources of capital which we intend to announce with our results.”