Mamas & Papas sold in pre-pack
Bluegem Capital has re-acquired the assets of Mamas & Papas in a pre-pack deal from the administrators. The move sees the closure of six stores with 73 related redundancies, along with further, yet to be disclosed, head office job losses in the pipeline.
"These actions are always very difficult but they are also necessary in a challenging market to ensure Mamas & Papas achieves its considerable future potential," said Mamas & Papas chairman Riccardo Cincotta. "We will continue to review our store portfolio in the light of customers' changing behaviour and we remain fully committed to an omnichannel offering that reflects their evolving needs."
In September Mamas & Papas had called in Deloitte, who had handled the retailer's 2014 CVA, to explore a sale of the business as sales fell and losses grew.
That its larger competitor Mothercare has also entered administration and is in the process of closing all of its 79 UK stores may offer Mamas & Papas the opportunity to regroup, but the market remains exceedingly tough.