Endless acquired Kiddicare.com Limited (“Kiddicare”) from Wm Morrison Supermarkets plc (“Morrisons”) in July 2014, when it was incurring significant losses as reported in Morrisons announcements to the City. It had been acquired to be the platform for Morrisons online offering but this strategy was changed and Kiddicare was then non-core.
Kiddicare is one of the leading baby and nursery product retailers in the UK but its losses were not sustainable. After acquiring the business, Endless carried out a comprehensive and positive restructuring in order to return the company back to its online heritage. By targeting a return to its online-only business, we believed that there would be retailers interested in the business for its website traffic and brand proposition. This proved to be accurate and allowed the business to be recovered from its recent heavy loss-making position.
All of the above was carried out in less than three months, with the restructured business subsequently being sold to WorldStores, a rapidly growing, pureplay online retailer. From making a significant loss in FY14, Kiddicare is expected to return to profit for FY15 whilst ensuring 200 jobs were secured.