MOTHERCARE is working with financial experts in a bid to save stores from closure.

The struggling baby products chain has appointed KPMG to advise it on restructuring financial plans as it holds crunch talks with lenders.

There are several Mothercare stores in Sussex including in Churchill Square, Brighton, Worthing and Eastbourne.

Business has fallen, both in stores and online, resulting in shares plummeting 7.2 per cent in the 12 weeks to December 30, while online sales tumbled 6.9 per cent.

The group’s shares slumped 14 per cent on Monday but it hopes accounting firm KPMG will help it secure more funding from lenders.

These include HSBC and Barclays.

Mothercare expects its negotiations to conclude before May 17.

Mark Newton-Jones, chief executive of Mothercare, said: “Mothercare’s lenders have agreed to defer the testing of our financial covenants due on March 24 accordingly.

“We will make further announcements as and when appropriate.

“As previously indicated, we are also exploring additional sources of financing to support and maintain the momentum of our transformation programme and we are engaged in preliminary discussions on securing such additional financing.”

Meanwhile, fashion retailer New Look has announced it has gone into a Company Voluntary Arrangement (CVA) where it will close stores that are not profitable.

It has identified 60 stores, but those in Sussex are not among them.

Alistair McGeorge, chairman, said: “In order to help restore long-term profitability, it is clear we need to reduce our fixed cost base.

“We are therefore pleased to have gained the support of our creditors to address our over-rented store estate.

“Launching a CVA has been a tough decision and our priority remains keeping all potentially affected colleagues informed during this difficult time.”