Morrisons sells Kiddicare for 2 million pounds

Supermarket Morrisons has sold its children and baby products business, Kiddicare, to private equity firm Endless for 2 million

pounds.

Morrisons bought Kiddicare for 70 million pounds in 2011, but announced earlier this year that it was selling off the business as it no longer had “strategic rationale” for the business.

The supermarket chain said it would retain the liabilities relating to 10 Kiddicare store leases, while adding that it was confident the 163 million pounds provision announced at its preliminary results will cover all the costs associated with its exit from the business.

Endless, which specialises in restructurings, is reported looking to return the baby specialist to an online-only presence, which could result in job losses. Currently Kiddicare employs nearly 1,000 people, of which 700 work in its 11 stores across the UK. However, the private equity firm has yet to confirm its long-term plans for the business.

Commenting on the acquisition, Garry Wilson, managing partner of Endless, 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.”