Future of Mothercare store at Merry Hill uncertain amid closure plan

The store on the centre's retail park, off Pedmore Road, Brierley Hill, was not on the list of 50 of the firm's underperforming stores lined up for closure.

But its fate and that of 300 Mothercare staff across the country was put up in the air after it emerged that a key plank of the retailer's restructuring plan was rejected by creditors.

Mothercare said this week that rent reduction proposals for Children's World, a subsidiary that houses 21 of its stores, including that at intu Merry Hill, had been knocked back by landlords following a vote last week.

The retailer is now considering "all options" for the unit, including shutting the outlets, which employ a total of 336 people.

It came just days after Mothercare got the green light to swing the axe on the 50 underperforming stores, including Early Learning Centre fascias, in a move that will see 800 jobs put at risk.

Those to close include Walsall and Stafford where 30 jobs are affected.

Those store closures will be carried out through a Company Voluntary Arrangement - a move which allows companies to close loss-making shops and secure rental discounts.

On Friday, Mothercare said it had received the backing of creditors, including its landlords, to press ahead with the CVA.

However, it did not at the time indicate that plans for Children's World had been rejected by 73.3 per cent of creditors, including landlords. It had required 75 per cent of the vote.

The store closure programme is part of a wide-ranging restructuring plan that will also see Mothercare bag a re-financing package worth up to £113.5 million.

Mothercare chairman Clive Whiley said: "KPMG have confirmed the votes relating to Mothercare UK and Early Learning Centre CVA's 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."

Mothercare bought Children's World from Boots in January 1996 and re-branded all of its superstores as Mothercare World.

It said that a further announcement about these sites will be made in due course.

Mothercare continues to trade as a going concern under the control of its directors.

All other details as set out in announcement of 1 June 2018 remain unchanged.