Morrisons sells its baby business in Kiddi sale
MORRISONS yesterday continued its recovery plan by selling Kiddicare, its children and baby goods business.
Morrisons said it no longer had a strategic role within the business
The supermarket said it had sold the mainly online business to private equity group Endless for £2million.
It was put up for sale in March after Morrisons said it no longer had a strategic role within the business following the launch of Morrisons.com through a tie-up with Ocado.
Morrisons said it would retain the liabilities relating to 10 Kiddicare store leases and stressed it was confident the £163 million provision announced with its annual results in March would cover all the costs of the business.
Shares in Morrisons, which is also cutting prices and attempting to improve its own-brand products to win back market share, climbed 3½p to 176¼p.
Endless managing partner Garry Wilson said: “Kiddicare has a history as a trusted brand in the children’s market. We will be working hard to grow the business over the long term.”
Retail analysts IGD said the move would help Morrisons “focus more on its priorities”.