Mothercare has launched a rights issue to raise around £100m to deliver on a new strategic plan designed to transform the retailer into a digitally-led business ahead of international growth plans.
As part of the investment Mothercare will look to modernise its UK portfolio of almost 1,500 Mothercare and Early Learning Centre stores, improve its IT, e-commerce systems and infrastructure, and improve the capital structure.
It is expected that approximately £25m will be applied to store closures and around £20m to Mothercare’s store refurbishment programme.
Digital systems and infrastructure at the brand will receive around £10m while £40m will be applied to Mothercare’s existing term loan.
Mark Newton-Jones, chief executive of Mothercare, said: "We have set out our strategic plans for the turnaround of Mothercare and ELC in the UK. By modernising and transforming the UK into a digitally-led business supported by a modern store estate we will underpin the growth of the group's successful international business.
“Our ambition is for Mothercare to become the leading global retailer for parents and young children.”
Mothercare has arranged for the rights issue to be fully underwritten by Numis Securities, J.P. Morgan Cazenove and HSBC.