Mothercare has stepped up its search for emergency funding by calling on the investment bank Rothschild to help it search for investment and alternative financing options ahead of its full-year results in May.
According to a report by The Sunday Telegraph, Rothschild is understood to be reaching outside of the retailer’s current lenders (HSBC and Barclays) to secure a cash injection.
Mothercare has already enlisted the help of KPMG to handle discussions with HSBC and Barclay’s over its debt obligations and is aiming to find the funds before May 17, when it will be revealing its full-year financial results.
The last few weeks have seen the retail group report a 2.8% like-for-like fall in UK sales, while also replacing chief executive Mark Newton-Jones with former Kmart exec David Wood and non-executive chairman Alan Parker with Clive Whiley.
The news comes just weeks after it was revealed that Mothercare was considering a company voluntary arrangement (CVA) which could see it closing up to 47 of its 143 stores.
Mothercare has been having a difficult time for the last year; it initially reported losses of £700,000 in its 2017 interim results.
