March 21, 2018 / 7:39 AM / in 8 months

UK retailer Mothercare says lenders agree to defer testing of financial covenants

March 21 (Reuters) - British baby goods retailer Mothercare Plc said on Wednesday its lenders agreed to defer a testing of its financial covenants due on March 24 and that discussions with them on the terms of its existing financial facilities were “progressing constructively”.

This comes after Mothercare warned earlier this month that its full-year profit would likely come in at the lower end of its guidance and said it would need some financial covenants to be waived, adding to concerns about high-street retailers in Britain.

Mothercare said it expected the discussions to conclude before May 17, when the company is set to announce its preliminary results.

The company is also exploring additional sources of financing, it said, adding that it was engaged in preliminary discussions on securing such financing. (Reporting by Arathy S Nair in Bengaluru; Editing by Subhranshu Sahu)

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