Mothercare is to close about 50 of its 137 stores by June next year with the potential loss of about 800 jobs after landlords approved a financial rescue package on Friday.

Clive Whiley, interim executive chairman of the struggling baby goods retailer, said the deal was a “crucial step forward to achieve the renewed and stable financial structure for the business that will drive an acceleration of Mothercare’s transformation”.

More than three-quarters of the independent creditors, including landlords and suppliers, backed the company voluntary arrangement (CVA) plan, a form of insolvency which enables retailers to exit unprofitable stores and reduce rents.

There had been fears of a push back from landlords who have been faced with a string of CVAs in recent months.

New Look, Carpetright and Carluccio’s have all used the process to jettison unwanted stores while House of Fraser is expected to announce details of its restructure within days.

Whiley said: “We are very grateful for the support of our many stakeholders across our creditor base in supporting today’s CVA proposals. Their forbearance and support today is a crucial step forward to achieve the renewed and stable financial structure for the business that will drive an acceleration of Mothercare’s transformation.

“These measures provide a solid platform from which to reposition the group and begin to focus on growth, both in the UK and internationally.”

More details to follow ...