Morrisons sells Kiddicare business to Endless for £2 million
Morrisons has announced that it has sold baby products retailer Kiddicare to private equity firm Endless for £2 million.
The supermarket bought Kiddicare for £70 million in 2011 but announced earlier this year that it was to sell the business after a disappointing financial performance resulted in Morrisons accepting a £163 million writedown on Kiddicare in its last full year results.
Turnaround specialist Endless is thought to have beaten off rival private equity firm Better Capital in its bid to acquire the retailer.
Endless managing partner Garry Wilson said: “Kiddicare has a history as a trusted brand in the children’s market. We will be working hard with management to grow the business over the long-term.”
Morrisons said it will retain the liabilities relating to 10 Kiddicare store leases, adding that it is confident the £163 million provision announced at its preliminary results will cover all the costs associated with its exit from the business.
Founded in 1974, Kiddicare reported sales of around £80 million in the year to February 2014. The retailer operates an online store and from 11 superstores.
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