Britain's Mothercare, the struggling mother and baby products retailer, said on Thursday it would ask investors for 28 million pounds ($38 million) as part of a restructuring plan that would see a further 50 stores close.
Mark Newton-Jones will return to the retailer, less than two months after he was forced out with just a few minutes' notice, Sky News reported.
Mothercare's sales and profit have been hammered by intense competition from supermarket groups and online retailers in its main United Kingdom market as well as by rising costs. Its shares have lost 83 per cent of their value over the past year.
It is expected tomorrow to announce the closure of 50 stores, as part of a company voluntary arrangement (CVA), an insolvency process which allows companies to drive down rents at certain stores and shut underperforming sites.
Mothercare now trades from 137 United Kingdom stores, having had almost 400 a decade ago.
Already this year Toys R Us UK, electricals group Maplin and drinks wholesaler Conviviality have moved into administration, while fashion retailer New Look and floor coverings retailer Carpetright are closing stores.
"We are in the final stages of detailing these restructuring plans alongside new committed debt facilities, an underwritten equity issue and access to other sources of capital which we intend to announce with our final results".