Mothercare finalises deal to sell products in Boots

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Baby goods firm Mothercare, which closed all its UK shops in January, says it has finally completed a franchise deal with Boots.

The pharmacy chain will sell Mothercare-branded clothing and home and travel products, such as pushchairs and car seats, at branches and online.

The deal was first announced in December last year, but was repeatedly delayed by the coronavirus pandemic.

It will run in the UK and Ireland for an initial period of 10 years.

Mothercare said it would take effect from the autumn season.

“Boots is at the heart of one of the largest healthcare businesses in the world and Mothercare will dovetail well as the specialist brand for parents and young children in both Boots stores and online,” Mothercare said in an update on its restructuring plan.

Mothercare’s UK business went into administration in November last year and all its 79 UK outlets were subsequently closed.

However, there are still 800 stores in 40 other territories, all operated by franchise partners.

Mothercare said it had signed a new 20-year deal with its biggest franchise partner, the Alshaya Group, which operates Mothercare stores in Russia and 10 Middle Eastern countries.

It said that the restructuring of its UK business had substantially reduced its debts, but estimated that it still had outstanding obligations worth about £10m.