Maternity and kidswear retailer Mamas & Papas is expected to report a profit for the second consecutive year, paving the way for a possible sale of the business in 2017.
The firm made a £6m profit in the year to March 2016, accounts seen by The Telegraph show. Like-for-like sales are up by more than a fifth, although total sales are thought to have slipped due to store closures.
Mamas & Papas halved the number of stores it operates in the UK through a company voluntary arrangement in 2014, bringing its total here to 34. It has also cut 90 head office roles.
As well as streamlining its operations, it has recently relaunched its ecommerce site and opened a flagship store in Westfield London.
It is understood BlueGem Capital, which acquired Mamas & Papas in 2014, now wants to sell the business. BlueGem declined to comment on these reports.