Retailer is latest to look at reducing costs by entering a Company Voluntary Arrangement.
Latest reports have put Mothercare as the next retailer to be considering a Company Voluntary Arrangement.
The baby and preschool retailer – which has a number of successful licensed collaborations in its portfolio – would look to close around 47 of its 143 stores if a CVA is agreed with lenders, according to reports.
This would see Mothercare follow in the footsteps of retailers including New Look which has already agreed a CVA to reduce costs.
Last week, Mothercare confirmed that its chief executive Mark Newton-Jones had resigned, with the board reportedly not happy with the progress made with his turnaround strategy.
David Wood – former Tesco and Kmart executive – has stepped into the role, taking charge of the turnaround plans.
It was also reported last week that Sainsbury’s had considered acquiring Mothercare but ultimately decided against making an offer.