Mothercare poised to announce plans for division sale

Mothercare has revealed that it is close to announcing plans to sell parts of its UK business after securing additional support from lenders.

The maternity and baby products chain is currently exploring its options for the alteration of its business footprint, including selling or separating its UK arm, as it implements its recent rebrand and moves towards an international franchising business model.

While no firm plans are thought to be in place at this time, Mothercare is expected to publish full details ahead of its annual general meeting at the end of July.

The move comes a matter of months after the retailer was forced to carry out a company voluntary arrangement (CVA) and managed to secure a funding deal that ensured its survival. This process did keep the company alive but led to the closing of 55 UK stores and the loss of around 900 UK jobs.

Last year, Mothercare was also forced to sell its Early Learning Centre business for £13.5 million in order to save its wider business, as it struggled to cope with the same difficulties with high-street trading that saw both Bathstore and Toys R Us fall into administration.

The recent announcement is thought to be the next stage in the firm's new plan to "rebuild" Mothercare, which has seen it expand its international presence to 1,000 stores. According to a statement made by the company in May, it hopes to capitalise on its new position as a "global brand", the primary job of which is to "design and then source the Mothercare branded product and distribute this product from factory to each franchise market".

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