Creditors of maternity retailer Mamas & Papas have voted overwhelmingly in favour of landlord Company Voluntary Arrangement proposals put forward last month.
The CVA proposals form part of a wider restructuring plan and will allow the company to revise the terms of its store leases with landlords. Mamas & Papas currently operates out of 63 UK stores.
Daniel Butters and Clare Boardman of Deloitte were appointed as nominees to the CVA proposed by Mamas & Papas on 20 August and now become the supervisors.
Butters, partner at Deloitte, said: “The vote in favour of the CVAs enables Mamas & Papas to revise lease terms and proceed with its wider restructuring plan; benefiting creditors, members, employees, suppliers and trade partners alike.
“In addition to securing votes from over 75% of all creditors, for a CVA to be approved a company also needs the support of over 50% of unconnected creditors, of which landlords are the largest group for Mamas & Papas. I am satisfied that the results of the vote represented the best outcome for all stakeholders and will lead to a greater recovery rate for affected landlords.”
Speaking in August, 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.”