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Shares in Mothercare plunged 6.5 per cent today after it announced that it would consider all options for its subsidiary, Childrens World, after its creditors did not approve the company’s restructuring proposal.
Last week, Mothercare’s creditors had approved a proposal to close more than a third of its UK stores as part of a survival plan. But later, the company said that a plan for the Children’s World unit had not been approved by the necessary 75 per cent majority.
The mistake was discovered by its advisers, KPMG, after the accountancy firm “scrutinised the voting returns relating to the CVA processes ahead of their formal filing with the High Court”, the group said.
“The CVA Proposals and/or any restructuring of CW (Childrens World) are not expected to affect the ordinary course of operations of Mothercare, which continues to trade as a going concern under the control of its directors,” the company added.