Struggling upmarket nursery chain appoints Deloitte to strike CVA with its landlords
DELOITTE has been appointed by Mamas & Papas, the struggling upmarket nursery chain, to strike a company voluntary agreement (CVA) with landlords as it attempts to cut costs and dispose of onerous lease arrangements.
Daniel Butters and Clare Boardman of Deloitte were appointed as nominees to supervise the CVA, which is part of wider restructuring plans following investment from Bluegem Capital Partners in July 2014.
The CVA relates to Mamas & Papas (Retail) Limited, the company which operates the prams and baby clothes chain’s UK stores. Other companies in the group are unaffected.
Landlords at 60 of its 63 UK shops have been asked to agree to cut rental costs through the CVA, which was announced following the conclusion of a strategic review launched earlier this year by the Huddersfield-based company.
“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,” said Daniel Butters, Deloitte partner.
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,” said
Creditors will vote on the proposals on 10 September 2014.