Morrisons has sold its childrenswear business, Kiddicare for £2 million to private equity firm Endless.
According to reports this morning, Endless – which specialises in restructurings – is looking at returning the company to an online-only presence.
Kiddicare currently has 11 stores, as well as its online business, and the move could result in around 700 job losses out of the 1,000 people currently employed.
Morrisons will retain the leases for ten of the stores.
The supermarket group bought Kiddicare for £70 million three years ago, however put it up for sale in March saying that Kiddicare no longer had strategic rationale for the business.
"Kiddicare has a history as a trusted brand in the children’s market," said Garry Wilson, managing partner at Endless. "We will be working hard with management to grow the business over the long-term."