Mothercare sells Early Learning Centre
Mothercare has agreed terms for the sale of the Early Learning Centre brand to the firm which operates The Entertainer retail store chain The sale was negotiated as part of Mothercare's continuing efforts to restructure its business and will see it receive £6 million on completion of the deal, with a further consideration of between £5 - £5.5 million for stock. Mothercare intends to retain inventory valued at £6 million for sale in the short term as well as accomodate a bespoke concession arrangement with The Entertainer for the supply of toys to its stores where ELC trades from, and online.
Mothercare CEO Mark Newton-Jones said: "This disposal of Early Learning Centre provides a further step towards eliminating our bank debt, and our new concession arrangements with The Entertainer will bring our customers an even stronger toys offer, both in store and online." Mothercare will have reduced its store chain from 137 to 80 by the end of this month. The news of the ELC sale has been welcomed by the City.
The Entertainer's founder & executive chairman commented: By combining our experience with that of ELC's passionate and capable partners around the world we look forward to re-invigorating the brand for generations to come."