Mothercare to sell off struggling Early Learning Centre brand, claims report

Mothercare is once again rumoured to be holding talks about selling off its struggling Early Learning Centre (ELC) brand.

Early Learning Centre: Mothercare said to be considering sale
Early Learning Centre: Mothercare said to be considering sale

The Sunday Times has reported investment bank Lazard is believed to be advising Mothercare on a potential sale of ELC after the latter’s poor performance over Christmas dragged the group’s sales down.

Simon Calver, chief executive at Mothercare, said during results on 8 January that a weak toy market over Christmas and the decision not to repeat a free delivery offer hit elc.co.uk sales.

A potential sell off of ELC by Mothercare has been mooted previously, with Sky News reporting in July that Mothercare had entered talks with advisers about a sale.

The two brands have been part of the same group for seven years after Mothercare paid £85m for the toy retailer.

Tesco is also reported to be considering a takeover bid for Mothercare and examined an acquisition six months ago.

Tesco's potential purchase of Mothercare would help it take on rival Morrisons, which acquired baby product retailer Kiddicare for £70m in 2011.

The toy seller was primarily an online-only retailer when acquired by Morrisons, but the supermarket chain has begun rolling out additional Kiddicare-branded brick and mortar stores

 

Subscribe to Campaign from just £57 per quarter

Includes the weekly magazine and quarterly Campaign IQ, plus unrestricted online access.

SUBSCRIBE

Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an Alert Now
Omnicom shuts M2M in UK after account losses
Share

1 Omnicom shuts M2M in UK after account losses

Omnicom has shut its media agency M2M in the UK following a string of account losses and Alistair MacCullum, the chief executive of M2M, is stepping down.

Brands that forge an emotional tie are best protected from copycats
Shares0
Share

1 Brands that forge an emotional tie are best protected from copycats

Forging an emotional tie with consumers is one of the strongest ways to protect your brand. Products can be copycatted, but the distinctive identity of a true brand can never be replicated argues Nir Wegrzyn, CEO of BrandOpus.

Just published