THE future of a Blackburn store was in doubt today as baby goods chain Mothercare announced it was to shut 50 underperforming shops.

The company employs about 3,000 people across 137 outlets.

It has a store, which includes a section for its subsidiary Early Learning Centre, on Blackburn's Grimshaw Retail Park on Lower Audley Street.

The closures, which will result in hundreds of job losses, will be carried out through a company voluntary arrangement (CVA) which allows companies to close loss-making shops and Mothercare to seek rental discounts from landlords to keep outlets open.

The firm also has three stores in Manchester and one in Preston.

A Mothercare spokesman said: "We can’t comment on individual store closures until all staff have been informed, which is our absolute priority.

"Of course we regret having to close stores and the impact this will have on colleagues. However, we had no alternative to executing a CVA.

"The business was in an unsustainable situation and was in clear need of an appropriate resolution and today’s comprehensive measures provide a renewed and stable financial structure for the business, and will allow Mothercare to accelerate its adaptation to the shifting dynamic towards online."

In  a move that will stun many observers, Mark Newton Jones, who was given the elbow as chief executive last month, will return to the fold and once again take the top job.

The man that had been brought in to replace him, David Wood, will now become managing director.

As part of the restructuring, Mothercare also announced a refinancing package worth up to £113.5 million.

Shares in Mothercare rose by nearly 24 per cent following the announcement.

Chairman Clive Whiley said: "The recent financial performance of the business, impacted in particular by a large number of legacy loss-making stores within the UK estate, has resulted in an unsustainable situation for the Mothercare brand, meaning the group was in clear need of an appropriate resolution.

"These measures provide a solid platform from which to reposition the group and begin to focus on growth, both in the UK and internationally."

Since January, Toys R Us and Maplin have filed for administration with stores in both Blackburn and Preston closing their doors.

Fashion retailers New Look and Select have embarked on radical store closure programmes but the New Look stores in Blackburn and Burnley are set to stay open.