Mothercare steps up search for rescue deal
HIGH STREET struggler Mothercare is seeking outside financing as it races to seal a rescue package by the middle of May.
The troubled chain has been working with investment bank Rothschild to explore alternative financing options beyond its current lenders, The Sunday
Telegraph understands. Accountancy giant KPMG is handling separate discussions with HSBC and Barclays over Mothercare’s existing debt. The retailer, which wants to have new funding in place by its fullyear results on May 17, has said talks with lenders have been “constructive”.
It comes as turnaround firm Alteri joins the string of potential bidders circling DIY chain Homebase, according to sources. The retailer’s Australian owners is understood to be exploring a potential escape from its ill-fated £340m takeover two years ago.
Private equity firms Hilco and Endless are also mulling a swoop for the under-fire retailer, which suffered a tough start to the year as the UK’S cold snap pummelled sales. Revenue slumped 13.5pc to £211m during the first three months of 2018, with likefor-like sales dropping 15.4pc.
Wesfarmers have been attempting to rename stores to the well-known Australian brand of Bunnings as part of an overhaul strategy. However, only 23 of the 250 Homebase stores have been changed so far.