(Reuters) – Mother-and-baby goods group Mothercare Plc is in talks to sell or franchise its UK store operations, Sky News reported on Thursday.
Mothercare, which faces intense competition from a new generation of web-based players, has kicked off negotiations with third parties, the broadcaster https://news.sky.com/story/mothercare-kicks-off-talks-to-offload-struggling-uk-arm-11770471 said.
Mothercare declined to comment on the report.
The company’s decision to pursue some form of transaction is expected to be confirmed in a trading update scheduled for Friday morning, Sky News said, citing sources.
Mothercare, which floated in 1972 and has been a mainstay of British shopping streets, said in May it had closed a third of its British stores over the past year, realising more than 25 million pounds in cost savings.
The company has been focusing on developing Mothercare as a global brand and boosting its online presence.
(Reporting by Rishika Chatterjee in Bengaluru; Editing by Kirsten Donovan)