Embattled maternity retailer Mamas & Papas has sought to reduce its rent expenses by proposing a Company Voluntary Arrangement (CVA).
The CVA, part of a wider restructuring plan for the group following investment from Bluegem Capital Partners in July, will see the company attempt to reduce rent at a number of its 63 UK stores.
The company will also cut approximately 90 jobs at its Leeds head office.
David Scacchetti, chairman of Mamas & Papas, said: “While our international and wholesale businesses are performing strongly, the UK retail environment is the toughest I’ve experienced in the 30 years since we founded Mamas & Papas and it has become clear that we need to take action if we are to maintain our proud position as a brand trusted by parents across the world.
“We believe the proposals will create a platform to allow us to continue offering innovative, premium products to customers in the UK and internationally, both in stores and online.”
Daniel Butters and Clare Boardman of Deloitte have been appointed as nominees to supervise the CVA proposed yesterday (20 August).
Butters, Deloitte partner, said: “The proposed CVA will allow the group to revise lease terms and proceed with its wider restructuring plan.
“The proposals put forward offer the best possible solution for Mamas & Papas (Retail) Limited and all of its stakeholders in comparison to the likely alternative outcomes.
“The creditors will vote on the proposals on 10 September 2014.”