Store front of the Mothercare shop in Kempshott Park Basingstoke

Mothercare has agreed to sell its Early Learning Centre brand for £13.5 billion, amid a mass company restructuring and refinancing.

The retailer, which has been struggling in recent years, said the move would bring the company closer to settling its debts.

It has sold the Early Learning Centre to TEAL Brands Limited, a subsidiary of TEAL Group Holdings, and the holding company of the Entertainer group.

Alongside announcing the sale, Mothercare said it was ahead of schedule with regards to its store closure programme.

By the end of the month, Mothercare will have 80 stores as a total of 137 back in May 2018.

In addition, the statement added that the company will produce at least £19 million in savings per annum in aggregate.

Mark Newton-Jones, CEO of Mothercare commented:

“We have made significant progress in recent months as we continue our strategic transformation to deliver a sustainable and profitable future for Mothercare.

“This disposal of Early Learning Centre provides a further step towards eliminating our bank debt, and our new concession arrangements with The Entertainer will bring our customers an even stronger Toys offer, both in stores and online. We look forward to working with the team at The Entertainer in the years to come.

He added: “We will update further at our full year results in May.” 

Mothercare shares (LON:MTC) are currently +7.74% as of 14:33PM (GMT), on the back of the announcement.