Mothercare (LON:MTC) shares rose 5 percent at market open on Wednesday, after it said talks with lenders were progressing ‘constructively’.

The group are in discussions with lenders after a series of profit warnings left them in need of a turnaround plan. The group said on Tuesday that it had called in KPMG to advise them on the refinancing of the business, and discussions with all lenders are expected to conclude before the release of its results on the 17th May.

The lenders had agreed to defer the testing of its financial covenants, due 24 March, accordingly.

“As previously indicated, we are also exploring additional sources of financing to support and maintain the momentum of our transformation programme and we are engaged in preliminary discussions on securing such additional financing,” Mothercare said.

Mothercare shares have fallen around 87 percent over the past year. Shares are currently trading up 5.25 percent at 16.52 (0840GMT).