Bird & Bird Guides Mothercare in Strategic Joint Venture with Reliance Brands UK
International law firm Bird & Bird has advised Mothercare Global Brand Limited (MGB), a subsidiary of Mothercare plc, in connection with forming a new joint venture, JVCO 2024 Limited, with Reliance Brands UK Limited (RBL UK), a subsidiary of Reliance Brands Limited.
Following the transaction, the new joint venture entity will own the Mothercare brand and related intellectual property assets for India, Nepal, Sri Lanka, Bhutan, and Bangladesh. It will also serve as the franchisor for these regions. RBL UK will hold a 51% stake in the joint venture company, while MGB will own the remaining 49%.
The transaction bolsters Mothercare’s operations in South Asia, highlighting the intrinsic strength of the Mothercare brand. It also contributes to a significant reduction in Mothercare’s bank facilities and leverage, as it is tied to the refinancing of debt with GB Europe Management Services Ltd.
The team from Bird & Bird was led by franchise & supply chain partner Graeme Payne, global head of International Retail & Consumer and corporate partners Simon Allport and Fiona McFarlane. They were assisted by IP associate James Pearson, commercial associates James Fowler and Emma Ikpe and corporate trainee Eloise Barry.
Graeme Payne, Simon Allport and Fiona McFarlane, lead partners on the transaction, commented, “We are delighted to have assisted our long-standing client Mothercare on this transaction and we look forward to seeing the results of the collaboration with RBL UK. This business critical deal is another great example of the excellent multi-practice work carried out by our firm’s specialists for international clients in the retail and consumer sector”.
