Mothercare secures Turkish licence deal

(Sharecast News) - Mothercare has secured a licence agreement with a leading Turkish retailer, the UK business announced on Monday. The AIM-listed mother and baby retailer said it struck the 10-year deal with Ebebek, which has 280 stores and an online business in Turkey, producing revenues of around £400m.

The agreement gives Ebebek exclusive right to use the Mothercare brand in Turkey.

Mothercare is also able to re-brand certain Ebebek own-brand products to sell under its own branding in territories where the Turkish retailer does not trade.

As well as its Turkish portfolio, Ebebek recently opened three stores in the UK.

Clive Whiley, chair, said the deal was "evidence of the strength, inherent value and global appeal" of the Mothercare brand.

He continued: "We are in discussions with several other parties to further restore critical mass alongside delivering our other core objectives.

"The underlying business continues to prove its resilience."

Mothercare is looking to secure a number of partners worldwide, and last October struck a £30m joint venture deal with Indian giant Reliance Industries.

However, full-year revenues and earnings have tumbled, as geopolitical tensions in the Middle East weigh heavily on franchise partners in the region.

Mothercare's long-running partnership with Boots in the UK is also coming to an end this year.

As at 0930 BST, shares in Mothercare were up 4% at 2.86p, while Ebebek's Istanbul-listed stock was down 1%.