Restructuring firm loans Mothercare £20m to repay debts
Gordon Brothers Brands has loaned Mothercare £19.5m to be used to repay outstanding debt.
Mothercare lost £4.4m in the six months ending 10 October following a difficult year that saw company plans pushed back by the coronavirus pandemic.
Net debt at the business is now £17.5 million, of which the loan from global advisory, restructuring and investment firm Gordon Brothers will be used to fund.
Worldwide sales as the business stood at £189.2m for the six-month period, down 42 per cent on the same period last year, while total group revenue was down 56.5 per cent.
In August, Mothercare finalised its deal with Boots to allow it to sell products in the high street pharmacy chain’s stores. The deal was announced in December but was postponed due to the coronavirus pandemic. The deal will last for 10 years.
Mothercare has also sealed a 20-year franchise agreement with the Alshaya Group.