Returning boss of Mothercare has pay docked

MOTHERCARE has docked the pay of chief executive Mark Newton-Jones as he returns to lead a turnaround of the ailing babywear retailer.

The company, which employs around 3,000 people across 137 stores, ousted him as boss in April.

However, on Thursday it said he would be returning to head up the firm as it undertakes a sweeping store-closure plan, which could see the loss of 800 jobs.

Mr Newton-Jones will be paid £480,000 on his return, having received a basic salary of £612,000 prior to his departure.

Mothercare has proposed to close 50 stores as part of a Company Voluntary Agreement, an insolvency procedure that requires the approval of landlords.

Mothercare also announced a refinancing package worth up to £113.5m. It comprises £28m through an equity capital-raising, an extension of its existing debt to £67.5m, and £18m in shareholder and trade partner loans.

Dan Wood, who was brought in to take over from Mr Newton Jones, will now be made managing director.

Mothercare also posted its annual results on Thursday, revealing it swung to a £72.8m pre-tax loss in the year to March 24, compared with a £7.1m profit in 2017.

On an adjusted basis, pre-tax profits fell 88.3% to just £2.3m. In the UK, losses grew from £9.7m to £79.4m.