Sainsbury's considered adding struggling retailer Mothercare to its shopping basket, but decided against making an offer, it has emerged.
The supermarket, which bought out Argos for £1.4bn back in 2016, is understood to have looked into a potential acquisition of the company in recent months but did not make an offer, the Press Association reported.
Shares in Mothercare closed up yesterday on the news, and climbed a further 3.5 per cent in early trading this morning.
The news comes at the end of another tough week for Mothercare after it pushed out chief executive Mark Newton-Jones with just minutes' notice. It has now appointed former Kmart boss David Wood as his replacement.
Last month City A.M. revealed that Mothercare had appointed KPMG advisers to handle a refinancing.
The group's share price has plummeted in recent months after two profit warnings and a softer consumer outlook.
As well as adding Argos to its basket, Sainsbury's had considered a takeover of convenience chain Nisa. But it later decided not to put forward a formal offer and Co-op bought the chain for nearly £140m.