Mothercare finalises deal to sell goods in Boots
Mothercare has announced a new business model after talks with franchisees as it also finalised a deal with Boots to sell goods across the chain in time for the autumn season.
The firm, which last year put its UK stores into administration with all 79 shops closing and 2,500 jobs lost, said the new franchise arrangements would ensure a “more sustainable and less capital-intensive business model”.
It will see the group’s franchise partners pay for products directly to manufacturers. The group added it had finally completed the deal with Boots to become its UK and Ireland franchise partner –firstannouncedindecember – which will see it sell Mothercare-branded clothing from this autumn and goods including pushchairs and car seats in larger stores and online.
The Boots deal had suffered a series of delays due to the coronavirus pandemic. Mothercare added that it still expects to take a £10 million hit from the UK stores administration last November.