Cinven ends interest in struggling Mothercare
The private equity firm Cinven has ended its interest in a potential bid for Mothercare, the struggling maternity product retailer. Its decision to walk away leaves Mothercare forced to deliver a turnaround in the full glare of the public markets for the foreseeable future.
Cinven never approached the retailer with an offer, but the day after reports of its interest in December, Mothercare's shares jumped 4.6 per cent. Both companies declined to comment.
While Mothercare has continued to grow sales and expand rapidly to more than 1,000 shops overseas, it has endured a torrid time in the UK recently. The retailer made a loss of £81.4m in the 28 weeks to 8 October, and it plans to close 111 loss-making UK town centre stores by March 2013, leaving it with 266 shops.
Mothercare is searching for a new chief executive, following the departure of Ben Gordon in November. Alan Parker, the chairman, is leading the company until a replacement for Mr Gordon is found.
The maternity retailer was dealt a fresh blow last week when the online baby products retailer Kiddicare, which was acquired by Morrisons last year for £70m, bought the 10 shops exited by the electricals retailer Best Buy UK.
Carphone Warehouse, which has discontinued the joint venture with Best Buy's UK stores, paid Morrisons £40m to take over the leases on the shops. Kiddicare will spend £15m converting the stores to the Kiddicare brands, creating 700 new jobs in the process. The first converted store will open before the autumn.
Scott Weavers-Wright, chief executive of Kiddicare, said: "These stores will put Kiddicare within easy driving distance of nearly a third of the UK population."
Matthew McEachran, analyst at Singer Capital Markets, said: "As Mothercare is currently embarking on a full review and strategic turnaround, this move [by Kiddicare] can only be viewed as a competitive threat."
- 1 Michael Douglas regrets 'embarrassing' Catherine Zeta-Jones with oral sex comments
- 2 Tunisia hotel attack: Locals form 'human shield' to protect hotel from gunman Seifeddine Rezgui
- 3 Tunisian builder has been hailed a hero after knocking gunman to the ground with roof tiles
- 4 German ethics council calls for incest between siblings to be legalised by Government
- 5 E.L James's #AskELJames Twitter Q&A didn't go exactly as planned
Kim Jong-un shows off airport designed by architect he likely had executed
Michael Douglas regrets 'embarrassing' Catherine Zeta-Jones with oral sex comments
Tunisia hotel attack: Locals form 'human shield' to protect hotel from gunman Seifeddine Rezgui
Dutch city of Utrecht to experiment with a universal, unconditional 'basic income'
German ethics council calls for incest between siblings to be legalised by Government
The moment a Queen's Guard soldier lost it and drew his gun at annoying tourist
Greece crisis: The wider lesson is that it’s time to abandon this failed experiment in currencies
'I wish the BBC would stop calling it Islamic State' – David Cameron unleashes frustration at broadcaster
Extend Right To Buy to tenants of private landlords, Labour's Jeremy Corbyn says
David Cameron struck double blow in his hopes to win Britain a new EU deal
Pentagon accuses Russia of 'playing with fire' over nuclear threats towards Nato
iJobs Money & Business
£22500 - £27000 per annum + OTE £45K: SThree: Since our inception in 1986, STh...
Negotiable: Recruitment Genius: This extremely successful and well-established...
Competitive with monthly bonus: Guru Careers: We are seeking an experienced FX...
Competitive (Freelance) : Guru Careers: An Investment Writer / Stock Picker is...