Mamas and Papas returns to profit ahead of possible sale

By

Sandra Halliday

Published
Nov 14, 2016

Childrenswear and maternity products retailer Mamas and Papas has reported a second year of profits following restructuring moves and is likely to be put up for sale soon.

The company, which is owned by BlueGem Capital, owner of the Liberty department store in London, faced tough times up until its acquisition from founders Luisa and David Scacchetti two years ago.

But BlueGem oversaw a company voluntary arrangement to reduce some heavy rent bills and cut the number of stores it runs in Britain by half, leaving with 34 UK sites and 59 globally. The moves also involved 90 job losses.

The Telegraph reported that it is due to file earnings of £6m for the year to March 2016, compared with a loss two years ago. And while total stores will have fallen on the back of those store closures, comparable sales should have risen by more than 20%.

Since its restructuring, it has opened several stores, including a flagship at Westfield, Stratford and relaunched its online shop. As well as flagships, it has also focused on smaller boutique format locations featuring an edit of its most popular products and also offering ‘experiences’ like nutritional classes, yoga classes and workshops.

It is currently seeking further locations for the smaller format concept in affluent neighbourhoods as well as expanding its experiences offer to larger stores and wants to return to a portfolio of around 50 UK stores within the next few years. It will also continue to support wholesale.

BlueGem and the Scacchettis, who retain a minority stake, have not commend on the likelihood of a sale but reports suggest the retailer will be put up for auction following its turnaround.