Mothercare To Keep U.K. Presence Through Boots Partnership

By Adriano Marchese

Mothercare PLC (MTC.LN) said Friday that it has signed a preliminary agreement with Boots UK, part of Walgreens Boots Alliance Inc. (WBA), in which the pharmacy chain will stock Mothercare-branded products as early as mid-2020.

The U.K. retailer said that the proposed partnership will be for an initial period of five years and that the terms and royalty rates arrangements will broadly be commensurate with its current franchisee agreements.

It said that the partnership will provide the foundations for Mothercare's continued presence in the U.K. in which Boots will stock and sell Mothercare-branded clothing, and home and travel products--the latter of which includes pushchairs and car seats.

A wider company product offer will be available in Boots stores from late summer 2020, Mothercare said.

In early November, Mothercare said its U.K. retail operations, including 79 stores, would enter administration.

At 1335 GMT, shares were up 1.05 pence, or 7.8%, at 14.5 pence.

Write to Adriano Marchese at [e-mail]

(END) Dow Jones Newswires

December 13, 2019 08:51 ET (13:51 GMT)

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