(Reuters) – Mothercare formed a joint venture with Reliance Brands Holding UK, strengthening its presence in the South Asian region, and said it refinanced its existing debt facilities with Gordon Brothers.
Reliance Brands, a unit of Reliance Industries Ltd, acquired a 51% stake in the JV that owns the Mothercare brand and related intellectual property in India, Nepal, Sri Lanka, Bhutan and Bangladesh for 16 million pounds ($21 million), with Mothercare retaining the remaining 49%.
Earlier in September, Reliance partnered with Israeli innerwear maker Delta Galil as part of its expansion in India’s apparel market, aiming to double its retail business within the next three to four years.
Mothercare said on Thursday it also secured new debt facilities of 8 million pounds, helping the London-listed company reduce its debt.
“Reduction in the required facility size, funded by the formation of the joint venture, and the resulting significantly reduced cash interest cost, greatly improves our flexibility for FY25 and beyond,” Clive Whiley, chairman of Mothercare, said in a statement.
($1 = 0.7695 pounds)
(Reporting by Aatrayee Chatterjee in Bengaluru; Editing by Maju Samuel)
