PRESS: Detsky Mir may sell ELC store chain – source

MOSCOW, Jul 23 (PRIME) -- Russia’s largest children goods retailer Detsky Mir may refuse to develop the British franchise-based Early Learning Centre (ELC) educational toy chain in Russia and sell this asset, Kommersant business daily reported on Tuesday citing a source close to one of the parties of the potential transaction.

The deal is currently only being discussed, the source said.

Nikolai Gabyshev, managing partner of Peregrine Capital, has estimated the chain at up to 250 million rubles. The sale will allow Detsky Mir to focus on the development of its own chain ABC with lower prices than in ELC, the daily said.

The development of the ELC network is being carried out by Detsky Mir’s subsidiary Kub-Market under the master franchise of the British Mothercare. The range of ELC includes toys for children up to 10 years old, goods for creativity and development, and hygiene products.

Detsky Mir bought Kub-Market from Pharmacy Chain 36.6 and Dmitry Kushayev in 2012.

As of the end of June, Detsky Mir operated 57 ELC stores.

(62.9776 rubles – U.S. $1)

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