Boots to sell Mothercare products as delayed deal gets sealed
Mothercare, a baby products firm has finally sealed its delayed deal with Boots to have its goods sold across the chain starting from autumn.
The baby products company had put its UK business into administration last year. This led to the closure of all 79 shops as well as the loss of 2,500 jobs.
It has announced that it had completed an agreement with the health and beauty retailer, Boots to become its UK and Ireland franchise partner.
This means Boots will start selling Mothercare-branded clothing and home and travel goods which include pushchairs and car seats, both in-store and online.
The deal which was first announced in December had faced several delays primarily as a result of the coronavirus pandemic.
Mothercare while announcing the finalised 10-year contract said, "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".
The deal with Boots faced series of delays as result of the COVID-19 pandemic
The company also disclosed that it had struck a 20-year deal with Alshaya Group, its main franchise partner, which has stores throughout the Middle East as well as in Russia.
The firm, in further change, said an overhaul of its franchise arrangements would ensure a "more sustainable and less capital-intensive business model", with the Group's partners paying manufacturers directly for products.
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"We believe this new way of working will ultimately have the added benefits of improving pricing for franchise partners, which in turn should better incentivise retail sales growth and assist our manufacturing partners in reinstating credit insurance for future seasons", Mothercare said.
The company, however, added that despite "a substantial reduction in the amounts owed", it expects to take a £10 million hit because of the UK administration.
The process left the group, focusing simply on offering branded products to retailers.
Earlier in June, Mothercare's interim boss, Glyn Hughes had quit leaving the leadership of the firm to the operating officer and chief financial officer, under chairman Clive Whiley
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