Mothercare has ruled out management buyout, says source

Mothercare has decided a management buyout is "100 percent not" an option in the future, a source familiar with the matter said on Wednesday, after Bloomberg reported that its CEO had proposed one earlier this year.

Mark Newton-Jones proposed taking the struggling retailer private before his departure in April, Bloomberg reported. Newton-Jones was rehired as chief executive last week.

Mothercare said in a statement that "at certain points the board considers various strategic options available to the company.

"However, no specific plans were drawn up in relation to an MBO."