The shareholders of the company have given the go signal for the next stage of the rescue plan of Mothercare as the retailer starts preparing to raise additional funds.
During the general meeting that was held today, the investors gave the company the approval to raise an extra £32.5 million through the placing of new shares.
The dealings of the new shares are set to start tomorrow morning as soon as the market opens.
This morning, the results of the placing and the open offer were announced. Nearly 78 percent of the shares were taken up by the investors under the open offer. The rest of the shares will be taken up after the placing.
The decision comes after the approval of two company voluntary arrangements (CVAs) which enable the company to shut down 49 of its stores.
One more CVA was proposed for Childrens World, a subsidiary of the company, however, this failed to obtain enough support from creditors.
Clive Whiley, the interim chief executive of the comapny, thanked the investors for their support for the completion of the refinancing.
However, he warned that the group cannot and should not be “complacent,” as the company still has so many things to do.
He said: “Conditions in the retail sector remain challenging and we know we must adapt with pace as we move forward.”
Whiley added: “We are clear what needs to be done and have targeted significant efficiencies and cost savings, as well as areas of investment, both of which will underpin our return to a sustainable future.”
He continued: “The whole team is focused on getting Mothercare, the global brand, back to where it should be as a fit for purpose business with a stronger, stable and more efficient structure both here in the UK and within our International operations.”