The company is set to close 50 of its 137 stores, causing hundreds of job losses.
He added: "The potential for the Mothercare brand in the United Kingdom, benefitting from a restructured store estate, and internationally remains significant". The new plan would see it trade from 73 United Kingdom stores by 2022.
People walk past a Mothercare store in Altricham, Britain, May 16, 2018.
This is not the first time Mothercare has struggled, with the retailer closing nearly half of its stores across the United Kingdom in the last five years. Its shares have lost 83 percent of their value over the a year ago.
The company confirmed it would reappoint the chief executive who left in April after poor Christmas trading and a profits warning.
"Commenting on today's refinancing and United Kingdom restructuring, Clive Whiley, the Company's Interim Executive Chairman, said in a statement: "The recent financial performance of the business, impacted in particular by a large number of legacy loss making stores within the United Kingdom estate, has resulted in an unsustainable situation for the Mothercare brand, meaning the Group was in clear need of an appropriate resolution.
Uncertainty over Mothercare's Northern Ireland stores as retailer announces closures
Clive Whiley, Mothercare's interim executive chairman, said: "The recent financial performance of the business, impacted in particular by a large number of legacy loss-making stores within the United Kingdom estate, has resulted in an unsustainable situation for the Mothercare brand, meaning the group was in clear need of an appropriate resolution".
The latest change at the top, first reported by Sky News, will be revealed alongside details of Mothercare's substantial restructuring, which it is undertaking in a bid to avoid becoming the latest high street name to collapse into administration.
In an attempt to save the company, Mothercare has entered into a company voluntary arrangement (CVA) to prevent the closure of all its retail stores.
It is not clear which Mothercare stores are under threat from its restructure plans, which includes a refinancing package worth £113.5 million.
The CVA will go to a creditors' vote on 1 June.