Mothercare shares drop after creditors reject CVA

Struggling retailer Mothercare (LON:MTC) has suffered another setback after its subsidiary Childrens World failed to reach an agreement with its creditors regarding the repayment of its corporate debts. Support for the remainder of Mothercare’s portfolio were approved by a clear margin.

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Childrens World operates 21 of Mothercare’s 152 sites and management said that it would be considering all options with regards to the subsidiary as a legal entity, but that it did not expect this outcome to have any substantial effect on the parent entity or the current refinancing plans.

Investors were not reassured by the news and the shares dropped by 4.35% to 29.65p as at 1425 BST.