Mothercare is shutting down 50 stores, with up to 800 jobs lost.
The high street chain made the decision due to the current poor climate for retailers that has already seen Toys R Us and Maplin close down this year.
Mothercare also raised a few eyebrows by rehiring chief executive Mark Newton Jones, who was only sacked last month.
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.’
Mothercare hopes the former boss Mr Jones can help lead it out of its current rut, which is partly down to weak consumer confidence off the back of soaring Brexit-fuelled inflation.
It has also had to contend with surging wage costs and eye-watering business rate hikes.
Mr Jones was replaced by David Wood, who will now become managing director.
The store closures will be carried out through a company voluntary arrangement (CVA) – a move which allows companies to close loss-making shops and secure rental discounts.
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.
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