In a significant move within the retail sector, Next has strategically acquired Cath Kidston’s brand and intellectual property for £8.5 million after the latter entered administration.
- This acquisition includes Cath Kidston’s brand, domain names, and intellectual property, completed via a pre-pack deal.
- The cathkidston.com domain will be temporarily retained by administrators to manage stock clearance.
- This change follows a turbulent period of ownership and market challenges for Cath Kidston.
- Notably, Next’s previous acquisitions include Joules and Made.com, showing a pattern of acquiring struggling retailers.
Next, a prominent fashion retailer, has made a strategic acquisition of Cath Kidston, purchasing the brand’s name, domain names, and intellectual property for £8.5 million. This acquisition follows Cath Kidston’s entry into administration, highlighting Next’s continuing interest in expanding through strategic purchases.
The deal is structured as a pre-pack arrangement, allowing Next to acquire these assets efficiently. Meanwhile, the cathkidston.com domain will be licensed back to the administrators for up to twelve weeks, facilitating stock clearance.
This acquisition process comes shortly after Hilco’s decision to put Cath Kidston up for sale, only eight months after acquiring it themselves. Zelf Hussain of PwC, serving as joint administrator, expressed optimism, stating, “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.”
Cath Kidston’s journey has been marked by significant challenges, including navigating through the pandemic and recent consumer spending slowdowns due to economic pressures. This turbulent backdrop underscores the necessity for strategic realignment.
Despite these challenges, Cath Kidston’s four remaining stores in London, Ashford, Cheshire Oaks, and York will remain open temporarily to facilitate stock sell-off, albeit leading to inevitable redundancies. This highlights the current transitional phase under new ownership.
Next has demonstrated a consistent strategy of acquiring distressed brands, with similar acquisitions such as Joules and Made.com from previous administrations. This trend underscores Next’s adeptness at capitalising on market opportunities and expanding its portfolio by integrating and revamping established brands.
The acquisition of Cath Kidston by Next signifies a calculated step in boosting brand diversification and market presence within the retail sector.
