Sainsbury’s considered acquiring embattled retailer Mothercare but decided against making an offer, it has emerged.
According to the Press Association the supermarket’s deals team had been monitoring the situation regarding the baby retailer over the past few months, with a view to make a potential acquisition.
However Sainsbury’s decided against making a firm offer.This comes as Sainsbury’s is in a period of expansion with them coming close to acquiring Nisa last year and adding Argos and Habitat to its portfolio amid a £1.4bn deal in 2016.
As a result of the news Mothercare has seen its shares increase to 19.89p per share, as of the time of writing.
The group’s share price has been plummeting in recent months after two profit warnings and a ‘softer consumer outlook’.
Last month Mothercare announced it had appointed KPMG advisers to handle a refinancing to avoid collapse, and only yesterday morning it announced the abrupt resignation of its CEO Mark Newton-Jones and that it had hired turnaround expert and former Tesco executive David Woods to lead its recovery going forward.