Next has secured Cath Kidston’s intellectual property for £8.5 million following its administration.
- Next will acquire Cath Kidston’s brand, domain names, and intellectual property.
- The cathkidston.com domain will be held temporarily by administrators for stock clearance.
- PwC’s Zelf Hussain and Rachael Wilkinson are appointed as joint administrators.
- Cath Kidston stores will remain open briefly, with eventual staff redundancies planned.
Next has successfully acquired the intellectual property of Cath Kidston for £8.5 million following the company’s fall into administration. The acquisition includes the brand name, domain names, and other intellectual property. This acquisition is part of a pre-pack deal, a strategy often used to sell an ‘insolvent’ company without affecting its operations.
In the short term, the cathkidston.com domain will remain under the control of administrators for up to 12 weeks for stock clearance before the brand is relaunched under Next’s management. This period will help manage the transition effectively and allow the clearance of existing stock.
The appointment of Zelf Hussain and Rachael Wilkinson from PwC as joint administrators signifies a critical step in managing the administration process. Hussain commented that Cath Kidston is a cherished lifestyle brand and expressed confidence in Next’s ability to nurture its future growth. This sale came just eight months after Hilco took ownership, marking a rapid turn of events for the company.
During this transitional phase, Cath Kidston’s four stores located in London, Ashford, Cheshire Oaks, and York will continue operations to liquidate stock. Unfortunately, this phase will lead to redundancies as operations wind down, affecting 125 employees. Efforts will be made to support affected staff during this challenging time.
It is noteworthy that Next has previously acquired struggling retailers, such as Joules and Made.com, indicating a strategic approach towards investing in distressed but valuable brands. Prior to its takeover by Hilco, Cath Kidston was purchased out of administration by Baring Private Equity Asia, resulting in significant job losses and store closures.
This acquisition highlights Next’s strategy of acquiring and reviving distressed brands, continuing its trend of strategic expansion.
