Mothercare delays commencement of Boots deal; in talks to source more debt

Mon, 30th Mar 2020

Infant merchandise retailer Mothercare said it had delayed the commencement of a distribution agreement with Boots and was currently talking to lenders about upping the size of its debt amid the Covid-19 crisis. The company said there had 'inevitably been some delays' wrapping up the Boots deal, due to operational priorities forced upon both businesses by Covid-19. 'We currently anticipate that contractual arrangements will be finalised in late spring and that a wider Mothercare product offer will be available online and in Boots stores from late summer 2020,' Mothercare said. The company, which has undergone a sweeping restructuring, said it remained in discussions with a number of debt providers regarding entering into new debt facilities. It said it had not extended a standby equity facility of up to £20m made available by Numis Securities, which had therefore lapsed. 'In this context, the board has determined for the time being that it will be in the better interests of stakeholders to pursue additional debt facilities for its reduced finance requirements rather than pursuing an equity solution at this time,' Mothercare said. 'The board continues to keep the financial needs and available resources of the group under close review through this unprecedented period and will take all necessary steps to preserve and/or enhance the groupÂ’s liquidity.' Story provided by StockMarketWire.com

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