Mamas & Papas goes in search of a new parent | Economic news

The Mamas & Papas childcare chain is put up for sale by its private backers.

Sky News understands the wholesaler and retailer, which has been owned by Bluegem Capital since 2014, is working with Rothschild bankers on a potential auction.

Mamas & Papas claims to be the largest retailer of own-brand baby products in the UK, with over £100million in sales in its last financial year.

In the UK, it trades from 22 stand-alone stores as well as 14 concessions in Next stores.

The relationship with Next, which includes plans for 19 more dealerships, has sparked speculation in the industry that it may be interested in acquiring Mamas & Papas outright.

Mamas & Papas also sells in 40 countries around the world through a network of distribution partners and franchisees.

Retail executives believe Bluegem is seeking a price tag above £100m for the business.

This represents a sharp turnaround from a pre-pack administration in 2019 and an earlier voluntary agreement by the company to reduce its financial debt.

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In its last financial year, which ended in March, the company recorded earnings before interest, tax, depreciation and amortization of £11 million, compared with a loss of £6 million two years earlier.

Neither Bluegem Capital nor Rothschild responded to calls for comment, while a Mamas & Papas spokesperson declined to comment.

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