Mothercare has secured ongoing funding as it enters into a new joint venture with Reliance Brands UK covering its IP assets across India, Nepal, Bhutan, Bangladesh and Sri Lanka. Reliance Brands UK has a 51 per cent stake in the JV for which it paid £16m, replacing its previous 30-year franchise agreement with Mothercare.
“Today’s agreement strengthens our operations in South Asia through an even closer relationship with Reliance, our existing valued franchise partner, and underlines the intrinsic value of the Mothercare brand strength,” commented Mothercare chair Clive Whiley. “We have renewed confidence in the opportunity that this reinvigorated joint venture now presents. We look forward to working even more closely with Reliance Brands as our joint-venture partner and not just franchisee in the region, moving forward together.”
This has allowed Mothercare, which posted revenues of £56.2m for the 53 weeks to March ’24, to reduce its financing arrangement with Gordon Brothers to £8m from £19.5m.
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