Mothercare is in discussions to sell its pre-school toys and products business, Early Learning Centre.
The mother and baby specialist retailer has hired Lazard to advise the firm as it holds talks with several parties on a ‘cut-price’ sale of ELC, reports Retail Week.
It was reported last week that Tesco was eyeing up the business to help refresh its supermarkets, however the supermarket giant has since put these plans on hold.
Mothercare issued a profit warning at the beginning of this month due to the ‘highly promotional’ trading environment over Christmas.
For the 12 weeks to January 4th, the firm’s worldwide network sales fell 4.4 per cent and group reported sales down 6.1 per cent.
Total UK sales dropped 9.9 per cent in the period and UK like-for-like were down 4 per cent.