Member Article

Wm Morrison has two buyers circling for ‘mistake’ Kiddicare

Bradford-based supermarket group Wm Morrison is close to selling baby goods retailer Kiddicare.

It acquired Kiddicare three years ago but according to Sky News has now labelled the acquisition an expensive “mistake”.

Bidders have been narrowed to Better Capital, the firm headed by Jon Moulton, the City financier; and Endless, a specialist restructuring outfit.

Kiddicare was put up for sale in March after Morrisons took a £163 million impairment charge on the maternity wear specialist. Bankers at Rothschild are running the auction.

Morrisons bought Kiddicare for £70 million in 2011, arguing that the online business would aid its own transition to becoming a multi-channel retailer.

Morrisons has also announced 2,600 job cuts in recent weeks as it tries to simplify store management, in contrast to plans by rivals such as Lidl, which is recruiting another 2500 staff to accelerate its expansion.

Bdaily previously contacted Morrisons who said no comment would be made until the buying process was finalised.

This was posted in Bdaily's Members' News section by Clare Burnett .