July 25 (Reuters) - Mother-and-baby goods group Mothercare Plc is in talks to sell or franchise its UK store operations, Sky News reported on Thursday.
Mothercare, which faces intense competition from a new generation of web-based players, has kicked off negotiations with third parties, the broadcaster here said.
Mothercare declined to comment on the report.
The company’s decision to pursue some form of transaction is expected to be confirmed in a trading update scheduled for Friday morning, Sky News said, citing sources.
Mothercare, which floated in 1972 and has been a mainstay of British shopping streets, said in May it had closed a third of its British stores over the past year, realising more than 25 million pounds in cost savings.
The company has been focusing on developing Mothercare as a global brand and boosting its online presence. (Reporting by Rishika Chatterjee in Bengaluru; Editing by Kirsten Donovan)