Mothercare’s creditors have approved the troubled retailer’s plans to shutter 50 stores and slash rents through a company voluntary arrangement (CVA).

The business said its proposals, revealed last month, were approved by “the requisite majorities” of unsecured creditors in Mothercare, Childrens World and Early Learning Centre.

However, creditors can apply to court to challenge the CVA until June 29.

Mothercare, which stunned the market by reappointing Mark Newton-Jones as boss merely a month after he was ousted, is also placing new shares at 19p each in a bid to raise £28m.

The business said it expects the fundraising to complete in July.

Mothercare interim executive chairman Clive 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.”

A tranche of retailers including New Look, Carpetright and Select have launched CVAs since the turn of the year as high street chains grapple to right-size their store estates and reduce property costs.

House of Fraser is expected to launch a CVA of its own in the coming weeks, while a host of other businesses are thought to be mulling similar moves.

The department store chain’s plans sparked a backlash from the British Property Federation, while its high street neighbour Next has begun approaching landlords about having  “CVA clauses” inserted into their lease agreements.

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