Mothercare sells off Early Learning Centre to cut debt - Telegraph.co.uk
Mothercare is to sell the Early Learning Centre to toy retailer The Entertainer for £13.5m as it grapples with its turnaround.
The embattled retailer, which staved off collapse last year by shutting 60 stores and going cap in hand to shareholders to raise £30m, said the sale of the baby toy business was its “next step toward being free of bank debt”.
As part of its radical rescue plan Mothercare is shifting its focus from its shrinking UK business towards its international arm, which makes the bulk of revenues.
Mothercare said that while the Early Learning Centre (ELC) gave it a “solid presence in the toy market… the group does not have the necessary capital, resources or scale in this category…