Next has acquired Cath Kidston in a strategic £8.5m deal, saving the brand from administration.
- Next will gain control over Cath Kidston’s brand name, domain names, and intellectual property.
- The cathkidston.com domain will be temporarily licensed back to clear existing stock.
- Joint administrators at PwC are overseeing the transitional processes post-acquisition.
- The acquisition follows Hilco’s short-term ownership, amidst challenging market conditions.
Next, a prominent figure in the fashion retail industry, has strategically acquired Cath Kidston, a lifestyle brand, through a pre-pack administration deal valued at £8.5 million. The acquisition includes essential brand assets such as the brand name, domain names, and intellectual property, marking a significant rescue for Cath Kidston following its fall into administration.
In a move aimed at maintaining the brand’s presence while transitioning ownership, the cathkidston.com domain will be licensed back to current administrators for up to 12 weeks. This interim arrangement allows the existing stock to be effectively cleared before Next relaunches the brand under its stewardship, demonstrating a meticulous approach to brand acquisition and revitalisation.
Under the supervision of joint administrators Zelf Hussain and Rachael Wilkinson from PwC, the acquisition process is being managed with precision. PwC’s involvement is pivotal in ensuring a smooth transition and adherence to administrative protocols, a crucial element in safeguarding the interests of stakeholders and staff.
Cath Kidston had been put up for sale by Hilco, its owner since February, following a period marked by challenging trading conditions. These challenges, particularly heightened by the ongoing pandemic and economic pressures, have significantly impacted consumer spending leading to Cath Kidston’s financial difficulties.
The acquisition by Next is a continuation of its strategy to capitalise on distressed retail opportunities, akin to its previous acquisitions of Joules and Made.com. Cath Kidston’s four remaining stores in the UK will remain operational to sell off current stock, though redundancies are anticipated. Despite these hurdles, Next’s acquisition is seen as a positive development for the continuity of the Cath Kidston brand.
Next’s acquisition of Cath Kidston serves as a tactical move to preserve a beloved brand amidst economic adversities.
