UK's Mothercare says it expects to complete refinancing shortly (updated)

Mothercare

22/09/2023 08:25

(Adds financial results, share movement, background from
paragraph 3 onwards)
       Sept 22 (Reuters) - Mothercare  MTC.L  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)
 ((Aatrayee.Chatterjee@thomsonreuters.com;))