Mamas & Papas sold in pre-pack administration
11 Nov 2019
Babycare retailer Mamas & Papas has been sold in a pre-pack administration handled by Deloitte, with the assets bought back by its owner Bluegem Capital partners as creditors lose out
11 Nov 2019
This transaction will result in six shops shutting, with the loss of dozens of jobs. Bluegem Capital ultimately owned the parent company Mamas & Papas Group. The move, which came just days after high street rival Mothercare went into administration, has enabled the private equity firm to regain control and reduce its financial liabilities, by shutting six loss-making stores immediately, in:
- Milton Keynes;
- Leamington; and
Mamas & Papas has made 73 staff redundant with immediate effect. The company’s remaining 21 stores remain open but it says it will continue to review its Huddersfield head office operations, where 54 further jobs are at risk.
Mamas & Papas was founded in 1981 in Huddersfield by David and Luisa Scacchetti and rapidly grew but was bought by Bluegem Capital after a restructuring process five years ago.
Riccardo Cincotta, executive chairman of Mamas & Papas, said: ‘These actions are always difficult but they are also necessary in a challenging market to ensure Mamas & Papas achieves its considerable future potential.
‘We remain fully focused on maintaining our position as the UK’s most popular nursery brand. We will continue to review our store portfolio in the light of customers’ changing behaviour and we remain fully committed to an omni-channel offering that reflects their evolving needs.’
The retailer said all customer orders are unaffected by the administration and will be delivered.
Mamas & Papas appointed advisers from Deloitte in September to review options for the business. Deloitte had also handled a company voluntary arrangements (CVA) for the retailer in 2014, resulting in Mamas & Papas closing down half of its store estate.