Bluegem Capital, the chain’s owner since 2014, has retained Rothschild to explore a sale of the business; Next is one of the potential buyers.
Mamas & Papas, a retailer of nursery and baby supplies, is being put up for sale by its private equity investors.
The wholesaler and retailer, owned by Bluegem Capital since 2014, is collaborating with Rothschild bankers on a potential auction.
Mamas & Papas claims to be the largest retailer of own-brand baby items in the United Kingdom, with over £100 million in sales in its most recent fiscal year.
It operates 22 independent stores and 14 concessions within Next stores in the United Kingdom.
The connection between Next and Mamas & Papas, which includes plans for an additional 19 concessions, has fueled industry rumors that Next may be interested in acquiring the brand completely.
Through a network of distribution partners and franchisees, Mamas & Papas also sells in 40 countries worldwide.
Retail executives say Bluegem is seeking more than £100 million for the company.
This is a dramatic change from a pre-pack administration in 2019 and a previous business voluntary arrangement intended to reduce its financial responsibilities.
In its most recent fiscal year, which ended in March, the company generated £11 million in earnings before interest, taxes, depreciation, and amortization, compared to a £6 million loss two years prior.
Bluegem Capital and Rothschild did not respond to requests for comment, and a Mamas & Papas representative declined to comment.
