UK's Mothercare to detail major restructuring, equity raise on Thursday

[LONDON] Mothercare, the struggling British mother and baby products retailer, said on Monday it was finalising a "comprehensive restructuring" of its business that would involve new debt facilities and an equity fund raising.

The firm, which has been hit hard by intense competition from supermarket groups and online retailers in its main UK market, said details of its plan would be announced on Thursday along with results for the 2017-18 year.

Its statement followed a report in The Telegraph newspaper which said Mothercare was expected to unveil plans for a company voluntary arrangement (CVA) that would enable it to shut stores and secure rent reductions on others.

Shares in the group were down 7 per cent on Monday.

REUTERS