Next has successfully acquired the intellectual property of Cath Kidston, implementing a £8.5 million pre-pack deal.
- The acquisition includes Cath Kidston’s brand and domain names, with plans for a potential upcoming relaunch under Next’s ownership.
- Cath Kidston’s current stores will remain operational temporarily, as stock is cleared before eventual closures.
- Zelf Hussain and Rachael Wilkinson from PwC have been appointed as joint administrators, overseeing the transition.
- Challenges faced by Cath Kidston included market difficulties, pandemic impacts, and declining consumer spending.
Fashion retailer Next has finalised an £8.5 million agreement to acquire Cath Kidston’s intellectual property, following the latter’s entry into administration. This acquisition covers the lifestyle brand’s name, associated domain names, and other intellectual property assets.
In a strategic pre-pack arrangement, Next will allow the cathkidston.com domain to be used by administrators for up to 12 weeks. This interim measure aims to facilitate stock clearance before Next relaunches the brand.
Administrators Zelf Hussain and Rachael Wilkinson from PwC have been tasked with managing the administration process. They will ensure the smooth transition of assets and perform wind-down operations for Cath Kidston’s existing stores.
Cath Kidston’s stores, located in London, Ashford, Cheshire Oaks, and York, will operate temporarily to sell remaining stock. Ultimately, these retail outlets will close, resulting in redundancies among the 125 staff members.
The acquisition marks Next’s continued strategy of acquiring struggling retail brands, having previously purchased Joules and Made.com. This move reflects how retailers are navigating current economic challenges, like reduced consumer spending and increased operational costs.
This acquisition by Next reaffirms its strategic investment approach amidst challenging retail market conditions.
