Mothercare’s unsecured creditors have rejected proposals to place subsidiary Children’s World into a company voluntary arrangement process, it has emerged.
Its proposals gained 73.3% of the vote, narrowly missing the 75% threshold. There are 21 Children’s World stores.
CVA proposals for the main Mothercare business and its other subsidiary, Early Learning Centre, were approved on 1 June.
The exact percentage of the votes was not disclosed, although the retailer has since said they passed “by clear majorities”.
KPMG, Mothercare’s CVA adviser and nominee, determined the outcome after reviewing the voting returns ahead of formal filings with the high court today.
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The retailer said directors at both Mothercare and Children’s World are “considering all options in respect of CW as a legal entity”, with a further announcement to be made “in due course”.
Clive Whiley, interim executive chairman of Mothercare, said: “KPMG have confirmed the votes relating to Mothercare UK and Early Learning Centre’s CVAs passed by a clear majority. However, it is now clear that the CVA of Children’s World was not carried by creditors by a narrow margin.
“This will neither unsettle the UK restructuring and refinancing nor jeopardise our future transformation plans, which are already under way. As a board we are now considering our next steps with respect to Children’s World.”
The Children’s World subsidiary operates under the Mothercare brand. Mothercare bought the business from Boots in 1996.
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