// Next snaps up Cath Kidston in £8.5m deal
// The fashion retailer will acquire Cath Kidston’s brand name, domain names and intellectual property
Next has agreed to acquire Cath Kidston’s brand name, domain names and intellectual property after the business fell into administration.
The retail giant paid £8.5m for the intellection property in a pre-pack deal.
The cathkidston.com domain will be licenced back to the administrators for a period of up to 12 weeks to clear stock, prior to the brand’s relaunch under Next’s ownership.
Zelf Hussain and Rachael Wilkinson of PwC have been appointed as joint administrators.
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Cath Kidston owner Hilco put the retailer up for sale in February just eight months after buying it.
Hussain said: “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.
“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 costs.
“In the short term its four stores will continue to remain open whilst operations are wound down. Sadly, there will be redundancies during this period of wind down and we will continue to support the staff throughout this period.”
The company employs 125 people, with stores in London, Ashford, Cheshire Oaks, and York. These will remain open to trade down stock before closing permanently.
Next has a penchant for snapping up struggling retailers and bought Joules and Made.com out of administration last year.
Prior to Hilco’s takeover, Cath Kidston was bought out of administration by Baring Private Equity Asia (BPEA) and saw the loss of nearly 1,000 jobs and 60 UK stores.
