UK’s Mothercare says it expects to complete refinancing shortly
(Reuters) -Mothercare expects to complete a refinancing shortly and will remain in discussions with stakeholders and financing partners to ensure adequate financing, the British baby products retailer said on Friday.
In May, the company started discussions with its lender to change, renegotiate or refinance its debt facility due to high interest rates and said it may need waivers to future covenant tests.
Mothercare also posted a 44% drop in its full-year adjusted core profit to 6.7 million pounds ($8.21 million), which sent the London-listed company’s stock tumbling 15.6% in early trade.
The company has been struggling with the unprecedented demand shock caused by the pandemic, the Russia-Ukraine conflict and high interest rates.
Its total cash was 7.1 million pounds as of March 25, down from 9.2 million pounds, a year ago.
In June, Chief Executive Daniel Le Vesconte stepped down after just five months at the helm.
Mothercare’s shares are down 43% so far in 2023. ($1 = 0.8159 pounds)
(Reporting by Aatrayee Chatterjee in Bengaluru; Editing by Savio D’Souza)