Nursery Today magazine

Creditors approve Mamas & Papas (Retail) CVA

Mamas & Papas (Retail), the leading nursery brand, announces it has reached agreement with creditors on proposals to safeguard the future of its UK retail arm

Creditors, including landlords of 60 of its UK stores, voted overwhelmingly to approve a Company Voluntary Arrangement (CVA) at a meeting in central London this morning.
 
The CVA, which was overseen by Deloitte, relates to Mamas & Papas (Retail) Limited, the company which operates Mamas & Papas’ UK stores. Other companies in the group are unaffected.

Mamas & Papas (Retail) will now continue its constructive dialogue with landlords to implement the CVA proposals, which include plans to reduce rent on certain stores in the UK retail business.
David Scacchetti, chairman of Mamas & Papas (Retail), said:

“This is an important milestone for us. The proposals agreed today not only enable us to cut costs and ensure a profitable retail portfolio but will also create a platform to allow us to continue offering innovative, premium products to customers in the UK and internationally, both in stores and online.

“I would also like to take this opportunity to thank our creditors for their support during this difficult time. Alongside the recent investment from BlueGem, the strengthened leadership team and the support of our colleagues, we are confident we are taking the steps necessary to protect the Mamas & Papas brand and help it to achieve its future potential.”

The CVA was launched following the conclusion of a strategic review launched earlier this year by the Huddersfield-based company.

A consultation process with all staff is also under way to improve the operational efficiency of the company and put it in the best possible position for future growth.

The CVA agreement comes a month after experienced retail executive Derek Lovelock was appointed interim CEO.


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