Struggling retailer Mothercare (LON:MTC) has announced that it will close 60 of its 137 outlets and attempt to raise £32.5 million in new capital via an equity issue. The company has agreed revised terms for £62.5 million in debt facilities that are conditional on this issue taking place.
Management warned that it looked as though trading conditions would remain challenging in the second half of the year, but said that they had now identified £19 million in achievable savings. Interim Executive Chairman Clive Whiley said that: “Whilst the lack of full approval for the Childrens World CVA was disappointing, we have now found a solution which allows us to go further and faster with the right-sizing of our store portfolio”. Mothercare shares slipped 6.28% to 26.80p (as at 11:50 BST).