According to information obtained by News, Mothercare, whose stock has been banned since the start of the month, is close to reaching a deal with Reliance Brands.
According to a source close to Reliance, the agreement is anticipated to entail the establishment of a joint venture between the two parties, which would grant it authority over Mothercare’s brand in the Indian market, as said on Thursday.
According to them, it was expected to give Mothercare around £15 million in cash in exchange, which would be used to assist in refinancing the business’s debt.
Over the past 20 years, Mothercare has experienced an unstoppable slide, despite once being one of the largest listed retailers in Britain based on market capitalization.
Its market capitalization is currently under £20 million.
It continued to pay an interest rate of more than 19% on its credit facility, according to a trading statement released in May.
Additionally, the company’s pension shortfall exceeds its market value.
