US baby and mother retailer Destination Maternity will not make any more offers for Mothercare after a second bid was knocked back by the board.
The firm has had two non-binding written proposals rejected by Mothercare and it is not willing to significantly raise its price.
Mothercare was subject to a £256m bid on the 2 July this year which raised shareholders hopes as its share price surged by 16 per cent.
Ed Krell, chief executive officer of Destination Maternity said: “We are disappointed that the shareholders of Mothercare have not supported our proposal and that the Board of Mothercare was unwilling to allow us to conduct customary due diligence and engage in discussions with us regarding our proposal.”
Mothercare have shut 35 UK stores this year which helped it to a pre-tax income of £9.5m, ahead of forecasts. But sales slumped 7.5 per cent with like-for-like‘s falling 1.5 per cent.
Destination Maternity operates 575 stores in the US and Canada and trades through its website and other brand specific websites.