News Column

Mothercare's loans

May 5, 2014

Mothercare is renegotiating the terms of its bank loans just seven months after it secured a pounds 90m refinancing facility. A weekend report said that the embattled baby care retailer had asked lenders HSBC and Barclays for breathing space.

It comes after a number of profit warnings and the departure of chief executive Simon Calver in February.

A source close to Mothercare said the talks were "part of a prudent approach" about giving it the flexibility to fund investment as it opens new stores and carries out refits. Elsewhere in the business, loss-making stores are continuing to close as planned.

It emerged at the weekend that the company was squeezing suppliers by adding a 2.5% charge on invoices and telling them it would extend its payment time for bills to 90 days.

Last month, the group revealed a more resilient UK sales performance so far this year. PA

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: Guardian (UK)

Story Tools Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters