Warning over Mothercare on break-up buzz
Tuesday 13 December 2011
The City has raised concerns about the UK property costs associated with a break-up of Mothercare after talk of a private-equity bid lifted the maternity retailer's shares yesterday.
Private-equity firm Cinven is considering a potential takeover of Mothercare, which would see it focus on the group's burgeoning overseas operation and ditch its ailing UK business. But the buyout company has not yet approached Mothercare.
Sanjay Vidyarthi, an analyst at Espirito Santo, said: "Any initial intentions to close down the UK business and focus just on international are likely to be tempered on closer scrutiny. We maintain our view that landlords are unlikely to give Mothercare an easy time in terms of exiting leases early."
The retailer made a loss of £81.4m in the 28 weeks to 8 October.
Cinven is mulling appointing Paul Mason, the chairman of homewares chain Cath Kidston, to lead Mothercare, which has 352 UK stores and 957 overseas. Its shares rose by 7.4p, or 4.6 per cent, to 168p yesterday.
Mothercare has not had a chief executive since Ben Gordon quit last month. The retailer is being run by its chairman, Alan Parker, the former head of Whitbread.
- 1 BBC told new political editor must be 'impartial' with Nick Robinson reportedly stepping down
- 2 Humans of New York image of crying gay teen receives best response yet from Ellen DeGeneres
- 3 Number of young homeless people in Britain is 'more than three times the official figures'
- 4 Motorists taunt suicidal woman on bridge and tell her to 'get on with it'
- 5 The map showing the most dangerous tourist destinations in Europe, according to the Foreign Office
BBC told new political editor must be 'impartial' with Nick Robinson reportedly stepping down
Isis propaganda video shows 25 Syrian soldiers executed by teenage militants in Palmyra
Humans of New York image of crying gay teen receives best response yet from Ellen DeGeneres
Number of young homeless people in Britain is 'more than three times the official figures'
The map showing the most dangerous tourist destinations in Europe, according to the Foreign Office
More Britons believe that multiculturalism makes the country worse - not better, says poll
Nathan Collier: Montana man inspired by same-sex marriage ruling requests right to wed two wives
Greece crisis: IMF was pushed around by Angela Merkel and Nicholas Sarkozy – and now it is being humiliated
'I wish the BBC would stop calling it Islamic State' – David Cameron unleashes frustration at broadcaster
Forget little green men – aliens will look like humans, says Cambridge University evolution expert
Girl, 7, stares down hate preacher at Ohio festival with pro-LGBT rainbow flag gesture
iJobs Money & Business
£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...
£15000 - £16000 per annum: Recruitment Genius: Customer Service Advisors are r...
£20000 - £25000 per annum + OTE £45K: SThree: SThree were established in 1986....
£40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...