Mothercare finalises deal with Boots

Boots will sell Mothercare-branded clothing and goods including pushchairs and car seats

The group will become Boots' UK and Ireland franchise partner, which will see Boots sell Mothercare-branded clothing and goods including pushchairs and car seats.

Mothercare also announced a new business model after talks with franchisees. The group, which last year put its UK stores into administration with all 79 shops closing, said the new franchise arrangements will ensure a more sustainable and less capital intensive business model.

It will also involve the group's franchise partners paying manufacturers directly.

Mothercare said: "We believe this new way of working will ultimately have the added benefits of improving pricing for franchise partners, which in turn should better incentivise retail sales growth and assist our manufacturing partners in reinstating credit insurance for future seasons."

As well as the 10-year Boots deal, Mothercare said it had also struck a new 20-year franchise arrangement with Alshaya Group, its main franchise partner.

Mothercare said it still expects to take a £10m hit from the UK stores' administration last November.

The administration left Mothercare refocused on simply providing branded products to retailers.