Mamas & Papas seeks 50% rent cuts under CVA proposals
YORKSHIRE-based nursery chain Mamas & Papas is proposing to cut rents by up to 50% and change to monthly payments as part of a company voluntary arrangement with landlords.
Earlier this month, the Huddersfield-based company announced a major restructuring of its UK retail business when it said it was hoping to agree a CVA deal with landlords of 60 stores.
It is understood from Retail Week that Mamas & Papas is looking for a 50% rent reduction from landlords on 25 of its 60 stores and a 25% discount on a further 10 shops.
All landlords will receive all rent due up to the next payment date, it is thought, while the company will also set up a Compromised Lease Fund of up to £450,000, which will be shared by the affected landlords.
The company is looking to shed between 50 and 90 jobs at its head office, where it employs 440, while a further 956 are employed in its shops.
It said the proposals aim to safeguard the future of its UK retail arm in the face of a “persistently tough trading environment.”
The news follows the appointment earlier this month of experienced retail executive Derek Lovelock as interim CEO and the recent investment from private equity group BlueGem.
