Cath Kidston closes all stores as part of rescue deal
Cath Kidston will permanently close all 60 of its stores in the UK under a rescue deal with its Hong Kong-based owner Baring Private Equity Asia (BPEA).
The fashion label confirmed that parts of its business had been transferred by administrators following an independent sale process to CK Acquisitions, a company owned by BPEA.
Under the terms of the transaction, BPEA has retained the e-commerce platform and franchise and wholesale businesses, meaning Cath Kidston can continue to trade online.
Cath Kidston called in administrators after Baring failed to find a buyer for the brand. In a statement, the brand said “BPEA’s bid was determined to be the one which offered the highest value and best opportunity to secure the future of the business.”
“The bid did not include any of the UK retail store portfolio, which will be managed by the administrators, Alvarez & Marsal.”
The sale will mean 908 staff will be made redundant, with just 32 jobs saved in the UK.
Chief executive Melinda Paraie said: “While we are pleased that the future of Cath Kidston has been secured, this is obviously an extremely difficult day as we say goodbye to many colleagues.
“Despite our very best efforts, against the backdrop of COVID-19, we were unable to secure a solvent sale of the business which would have allowed us to avoid administration and carry on trading in our current form.”
A spokesperson for BPEA said: “While we are disappointed that the COVID-19 crisis has resulted in the cessation of the retail store network and impacted many employees, we are pleased to have secured a future for a number of Cath Kidston staff and the Cath Kidston brand in the form of a viable digital business.”