Next is in superior talks to purchase Cath Kidston in its newest swoop on a outstanding however troubled retail model.
Sky News has learnt that the FTSE-100 chain, which has a market worth of near £8.7bn, might wrap up a deal to amass the trendy classic label as quickly as Tuesday.
Banking sources mentioned an settlement was doubtless however not sure.
Cath Kidston has been owned by Hilco Capital, the specialist retail investor, for lower than a yr.
Next’s potential swoop on it marks an additional try to construct a portfolio of wholly owned retail labels.
Its acquisition technique has centered on well-known names which have run into monetary difficulties and which might profit from Next’s logistics and advertising muscle.
Among the manufacturers it has purchased are Made, the web furnishings retailer, and Joules, the style group which collapsed into administration late final yr.
It additionally bid for TopShop, the then jewel within the crown of Sir Philip Green’s excessive avenue empire, however pulled out of an public sale earlier than the model was bought to ASOS.
Next is because of report full-year outcomes on Wednesday and is forecast by City analysts to unveil file pre-tax earnings of greater than £850m.
PricewaterhouseCoopers has been advising Hilco on a sale of Cath Kidston for a number of weeks, and is known to have held talks with plenty of potential bidders.
Cath Kidston was purchased out of administration little greater than two years in the past by Baring Private Equity Asia (BPEA).
At one stage, it had scores of retailers, however now trades from fewer than a handful of its personal retailers, having collapsed into administration in 2020 with the lack of practically 1,000 jobs.
It was established by its eponymous founder in 1993, and have become a excessive avenue fixture with scores of standalone retailers.
Like many retailers, nevertheless, its fortunes had been hit by the pandemic, forcing it into insolvency about three years in the past.
BPEA, which took full management of Cath Kidston in 2016, struck a pre-pack insolvency deal which entailed the closure of its UK excessive avenue property.
It nonetheless has fewer than a handful of shops in Saudi Arabia.
Known for its floral and polka dot designs, Cath Kidston has been run for a number of years by Melinda Paraie, who joined as chief government from luxurious items model Coach in 2018.
It expanded from a single store in west London promoting automobile boot finds and classic cloth right into a enterprise providing style, homewares and equipment.
The chain made a fortune for its founder when she bought a stake to personal fairness agency TA Associates about 12 years in the past in a deal reportedly value £100m.
Next and Hilco declined to remark.
Source: information.sky.com”
