Daniel Butters and Clare Boardman of Deloitte have been appointed as nominees to supervise the company voluntary arrangement (CVA) for Mamas & Papas (Retail) Ltd.

The CVA is a key part of a wider restructuring plan for the group, following an injection of cash from private equity group, Bluegem Capital Partners in July 2014.

Under the plans for a CVA, all 60 retail sites will continue trading as normal and the company will continue to operate from its current head office in Huddersfield. However, it is likely that up to 90 jobs will be put at risk. The company has 1,700 staff in the UK and overseas, but only the UK operation is affected by the CVA move.

The company is also hoping to renegotiate rents with up to 60 landlords at its UK retail sites in a bid to reduce overheads.

The CVA will not seek to compromise claims of any other creditors (including, but not limited to, trade creditors, preferential creditors and/or employees)

Mamas & Papas will continue to service customers as normal and honour deposits/gifts.

Commenting on the announcement, Daniel Butters, Deloitte partner, said: ‘The proposed CVA will allow the group to revise lease terms and proceed with its wider restructuring plan.

‘The proposals put forward offer the best possible solution for Mamas & Papas (Retail) Ltd and all of its stakeholders in comparison to the likely alternative outcomes. The creditors will vote on the proposals on 10 September 2014.’

In the year to 1 March 2013, the company reported turnover of £108.2m with pre-tax profits of £340,000.