Mothers Work operates a maternity department in 502 Sears stores, and it now expects that its relationship with Sears will end at the current agreement's expiration on June 20, 2008.
In a press release, Mothers Work President and CEO Rebecca Matthias said: "While we are disappointed about the end of our relationship with Sears, we feel the decision not to proceed with a renewal is in the best interest of our stockholders since we were unable to reach terms on a renewal which would be favorable for Mothers Work and our stockholders.
"As we have previously stated, we are focused on generating sales that also generate an adequate return on investment and help us to increase shareholder value -- we are not interested in generating sales that do not help deliver shareholder value. We believe our current relationship with Sears has been a beneficial one for both parties and, most importantly, for the Sears customer."
Shares of Mothers Work closed Friday off 21 cents to $18.61.