The firm also said Mark Newton-Jones had agreed to return as chief executive following his abrupt departure just five weeks ago.
The plan to close stores and cut rents at 21 of its stores.is being carried out through a company voluntary arrangement (CVA).
The company plans cuts to its United Kingdom shop network under a company voluntary arrangement (CVA), a solution which must be approved by creditors and would also see rent reductions at 21 further outlets.
David Wood, the man brought in to replace him, becomes managing director.
The sub-£50mln company now has 137 stores up-and-down the United Kingdom but wants to have a portfolio of just 73 by 2022. Its shares have lost 83 per cent of their value over the past year.
"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.meaning the group was in clear need of an appropriate resolution", said interim executive chairman Clive Whiley.
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Mothercare said in a statement: "Recent financial performance, impacted in particular by a large number of legacy loss making stores within the United Kingdom estate, has resulted in a perilous financial condition for the Group".
Mothercare now trades from 137 United Kingdom stores, having had almost 400 a decade ago.
'These comprehensive measures provide a renewed and stable financial structure for the business and will drive a step change in Mothercare's transformation.
Creditor meetings to vote on the CVA proposals are expected to be held on June 1, with the process expected to complete in July.
That includes £28 million it is seeking to raise from shareholders, an extension of its existing debt to £67.5 million, and £18 million in shareholder and trade partner loans.