Endless close to Kiddicare acquisition

Although a formal agreement had not been reached, the Leeds-based specialist investor has almost succeeded in trumping a rival bid from Better Capital to buy Kiddicare, Sky News quoted people close the situation at saying.

Endless and Bradford-based Morrisons could announce a deal as soon as Friday.

Neither company could immediately be reached for comment. A spokesman for Better Capital declined to comment.

Morrisons, Britain’s fourth-biggest grocer, bought Kiddicare in 2012 for £70m as it took its first steps toward building a business selling non-food goods over the Internet.

Morrisons said it would sever the arm, along with its stake in US online grocer Fresh Direct, as it looks to raise cash to fund price cuts over three years to win back customers.

The deal could include the sale of all 10 stores under the Kiddicare brand or may involve the closure of some sites before the papers get drawn up.

Sources told Sky the grocer may have to pay a “substantial dowry” to the successful bidder.