Equity firm 'planning Mothercare bid'

A private equity firm is plotting a bid for Mothercare in a move that would end the UK retailer’s 40 years as a publicly listed company, reports said today.

Buyout firm Cinven’s plans are likely to see it jettison Mothercare’s troubled UK stores so it can focus on its better performing overseas operations, the Sunday Times said,

Several private equity houses are thought to be weighing up possible bids for Mothercare, although Cinven’s plans are the most advanced.

Mothercare has 352 stores in the UK employing 7,500 people, as well as more than 950 outlets overseas. It recently announced half-year losses of £81m (€94m) after UK like-for-like sales slumped 7%.

The company has already announced it is cutting 110 UK stores and said it will look to adjust the size and shape of its business in line with current conditions.

The mothers-to-be, babies and children’s goods retailer was founded by Iraqi-born entrepreneur Selim Zilkha, with its first store opening in Surrey in 1961. It became a public company in 1972.

And while the store is one of the most recognised brands on the British high street, its international business is outperforming its home market, helped by its presence in growth markets such as the Middle East and Africa.

Cinven, whose previous retail investments have included Allied Carpets, Hamleys and Peacocks, is likely to want an experienced retail executive to spearhead its plans.

That is likely to put Paul Mason in the frame, as the chairman of homeware and fashion retailer Cath Kidston has worked with Cinven several times in the past.

Last year, the private equity firm and Mr Mason tried to buy Netto, the discount food chain, but was pipped to the deal by Asda.