The firm now trades from 137 United Kingdom stores, having had almost 400 a decade ago.
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.
The list of stores set to close have not yet been announced.
Shares in Mothercare PLC surged Thursday after the baby products retailer announced a GBP113.5 million funding plan and restructuring of its United Kingdom store portfolio. It had intended have 92 outlets by 2023, but has now accelerated its closure plans and will have just 73 by that year.
Parker was instrumental in ousting Newton-Jones, but the former chief executive will now resume his role due to the leadership of interim executive chairman Clive Whiley.
The man that had been brought in to replace him, David Wood, will now become managing director.
As part of the restructuring, Mothercare has also arranged a refinancing package worth up to £113.5m.
"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", said executive chairman Clive Whiley.
Brutal trading conditions are also partly responsible for the collapse of Toys R Us UK, electricals group Maplin and drinks wholesaler Conviviality.
The company further said that the shareholder loans and the trade partner loan will provide immediate access to up to 18 million pounds (24.3 million dollars) of additional liquidity which Mothercare expects to fully meet the company's short term liquidity requirements, represent a strong signal of commitment and support from the company's largest shareholders and trade partners, alongside the company's existing lenders, to support Mothercare through this process. It is a final attempt to avoid administration and reset the business on a firm financial footing.
That won't be the only measure Mothercare wants to introduce; it also wants landlords of 21 other sites to agree to "material" rent reductions in a bid to dramatically cut its cost base.
"This in turn could force local councils to increase business rates to make up for revenue shortfalls".