Mothercare to Sell Educational Toy Brand ELC

British baby products retailer Mothercare said on Tuesday it plans to sell its educational toy brand ELC to Teal Brands for £13.5 million (€15.75 million) as it looks to cut debt, sending its shares up 6 per cent, The Irish Times reported. The company’s sales and profit have been hammered by intense competition from supermarket groups and online retailers in its main British market as well as by rising costs. In addition to the sale of Early Learning Centre Ltd (ELC), it will also sell some related assets, Mothercare said. It will, however, retain some ELC inventory to sell later. Proceeds from the transaction will be used to cut debt by about £17.5 million over the next year, the company said. “The Group does not have the necessary capital, resources or scale in this category to continue to invest and develop the own-brand ELC toys needed to maximise returns from this specialist brand,” the retailer said in a statement. Read more