Struggling Mothercare attempts to soothe investors after its shares fell 7% over loan talks

By Daily Mail Reporter

Updated: 17:22 EDT, 6 May 2014

Bosses at Mothercare have had to reassure the market after its shares fell 7 per cent that the firm expects to hit annual profit targets and has not breached agreements with banks over the terms of its loans.

Investors were spooked that the babywear retailer (down 11.25p to 175.5p) is once again in discussions with lenders over its finances, just seven months after securing a £90million refinancing.

Mothercare, which uses TV star Myleene Klass in its adverts, has recently issued a number of profit warnings and lost chief executive Simon Calver. Chairman Alan Parker has also come under investor pressure.

Myleene Klass and model Jessica Riddell: Mothercare uses the TV star in its adverts

The store said: ‘Mothercare continues to discuss with its banks its future plans for the business and the consequential funding requirements.

‘It expects to remain in compliance with the provisions and covenants of its facilities.’