Dec 13, 2019
Boots keeps Mothercare brand alive in UK with franchise deal
Boots will sell Mothercare products in the UK under a franchise agreement from next year, in a deal that will keep the brand alive in its home market following the closure of its own stores. Some Boots stores will contain a Mothercare shop within them. The baby products retailer, which last month put its UK business into administration and is closing all its stores, said the franchise partnership would run for an initial term of five years with royalty rates broadly in line with existing franchise agreements. Mark Newton-Jones, Mothercare's chief executive, said the company "Had found the right home in the UK". "We know the team at Boots well from our successful Mini Club partnership . . . and we now look forward to working in an even stronger collaboration with the Boots team," he said. By contrast, the international operation - largely run under franchise agreements already - generated profits of £28m last year from stores in Europe, Asia, the Middle East and Latin America.
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