Vintage lifestyle brand will continue trading online and through wholesale and franchise businesses.
Cath Kidston is to permanently close all of its 60 UK stores following a pre-pack rescue deal with its Hong Kong-based owner, Baring Private Equity Asia.
The lifestyle retailer and brand confirmed earlier this month that it was calling in Alvarez & Marsal as administrator, just two weeks after it was tasked with finding a buyer.
While the UK stores will close – resulting in the loss of 900 jobs – the brand will continue trading online and via its wholesale and franchise businesses around the world, reported The Guardian, including more than 100 stores.
“Like every retailer, Cath Kidston has faced significant challenges in recent years, including high rents and changing consumer behaviours,” commented A&M’s Richard Fleming. “These challenges have been exacerbated by the outbreak of COVID-19, which has been impacting the business globally since the beginning of the year.”
Melinda Paraie, chief executive of Cath Kidston, 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 number of major names have called in administrators over recent week including Laura Ashley, Debenhams, Oasis and Warehouse.
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