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Mothercare has confirmed is is shutting 50 stores as part of a restructuring plan resulting in hundreds of job losses.

Mothercare employs around 3,000 across 137 outlets.

And in a move that will stun many observers, the company is to re-hire former CEO Mark Newton-Jones, just 36 days after his unexpected exit.

Mr Newton-Jones left the company in early April after he was sacked by then-chairman Alan Parker, who has since left the business.

As part of the restructuring, Mothercare also announced a refinancing package worth up to £113.5 million.

It comprises £28 million through an equity capital raising, an extension of its existing debt to £67.5 million, £18 million in shareholder and trade partner loans.

(Image: PA)

The closures will be carried out through a company voluntary arrangement (CVA) - a move which would allow it to close loss-making shops and secure rental discounts.

Chairman Clive Whiley said: "The recent financial performance of the business, impacted in particular by a large number of legacy loss making stores within the UK estate, has resulted in an unsustainable situation for the Mothercare brand, meaning the group was in clear need of an appropriate resolution.

"These comprehensive measures provide a renewed and stable financial structure for the business and will drive a step change in 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."

The chain has struggled to fight off competition from cheaper rivals, including children's ranges from the likes of Tesco and Asda.

The store closure plans could include hundreds of job cuts, although one insider told Sky News it would be fewer than 1,000 of Mothercare's 3,000 full-time equivalent workforce.

A spokesman for Mothercare said in April that the discussions with the company's lenders are "progressing constructively".

"We are also exploring additional sources of financing to support and maintain the momentum of our transformation programme and we are engaged in preliminary discussions on securing such additional financing."

Mothercare's struggle comes just weeks after Toys R Us' UK collapse at a loss of all 100 stores and 3,000 jobs.

More than 25 branches have already closed down, with the remaining expected to shut by the end of April.

(Image: PA)

Earlier this year East slipped into administration , while Maplin is currently on the hunt for a buyer.

Restaurant chain Chimichanga, Jamie's Italian and Prezzo have also lined up closures for the coming months.

Meanwhile high street fashion chain New Look revealed a new restructuring plan in March with 60 closures in the pipeline - including a flagship Oxford Street store.

Rent costs in 393 branches will also be renegotiated as part of efforts to save the fashion empire in what it described as a "difficult" trading environment.

Similarly, flooring chain Carpetright is in talks with its banks after issuing its third profit warning in four months.

The troubled retailer, which has 409 UK branches, is "currently exploring" a company voluntary arrangement.

Mothercare has refused to comment.