Companies

Next buys Cath Kidston

Apr 3, 2023 United Kingdom

The UK-based retailer has acquired the fashion brand Cath Kidston from the administration for 8.5 million British pounds. The deal includes the brand's name and intellectual property, but not its four shops

Next added that the “cathkidston.com domain will be licenced back to the administrators for a period of up to 12 weeks to effect stock clearance, prior to relaunch under the company's ownership”. Hence, according to The Guardian, 125 jobs are now at risk, as Cath Kidston's administrator PricewaterhouseCoopers intends to close the brand's four stores in London, Ashford, Cheshire Oaks, and York, after selling the remaining inventory.

This purchase, which follows the acquisitions of the fashion brand Joules and online specialist Made.com, will enable the British retailer to continue expanding its brand portfolio.

“Cath Kidston is a well-loved lifestyle brand founded in 1993, and I am pleased to say that it has been bought by Next, who will make sure it continues to flower under their ownership”, commented Zelf Hussain, joint administrator and partner. “The company has over recent years navigated through incredibly challenging market conditions, including the pandemic restrictions, and most recently the decline in consumer spending driven by cost-of-living pressures and rising cost”, he added.

Known as a vintage chic fashion brand, Cath Kidston saw its business collapse in 2020. It was then bought and relaunched by the private investment firm, Baring Private Equity Asia (BPEA), in a rescue deal that resulted in a loss of nearly 1 000 jobs as the brand repositioned itself as a digital-first business. Last July, BPEA sold the business to the restructuring firm Hilco Capital, which reportedly had been looking for a buyer for a month now.

Image Credits: manchestereveningnews.co.uk

United Kingdom Acquisitions Fashion Retail