Mothercare sold its Watford office building for close to £15 million as part of a cost-cutting drive.

The British retailer sold the 100,000 sq ft UK headquarters and adjacent warehouse on Cherry Tree Road to BYM Capital and signed a ten-year lease under the sale-and-leaseback deal.

The struggling retailer had to make the savings after a Company Voluntary Arrangement: a way for limited companies who are insolvent to pay creditors over a fixed period.

BYM converts offices to residential under permitted development rights.

Property Week said it was told the site had potential to be converted into housing if Mothercare went under or vacated.

Last year, BYM Capital bought up BSkyB’s old headquarters in West London for £98m. The limited company plans to convert it into a 271-unit residential scheme, according to Property Week.