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Next step for Cath Kidston
Linda Hall
NEXT has bought the Cath Kidston brand name for £8.5 million (€9.6 million) after the British retailer fell into administration for the second time in two years.
Cath Kidston, which once had 60 stores in the UK as well as worldwide franchise outlets, was bought by restructuring experts Hilco in July 2020 but put on the market again earlier this year.
Approximately 125 jobs could be lost as PricewaterhouseCoopers’ administrators prepare to close Cath Kidston stores in London, Ashford (Kent), Cheshire Oaks and York once their stock has been sold off.
The Cath Kidston website is also be ing licensed back to the administrators for 12 weeks.
Acquiring the vintageinspired name is Next’s latest step in adding to its brand portfolio, which includes distribution rights to the US chains Gap and Victoria’s Secret in the UK.
Joules and the online furnishings specialists Made.com were also brought out of administration by Next as the company helps ailing brands maintain a presence in the UK. Next is also using some of these wellknown names to fill spaces in high street stores while reaching to a wider audience.
Next anticipates increasing prices more slowly over the next 12 months after betterthanexpected annual profits. The retailer saw annual pretax profit increase by 5.7 per cent to £870.4 million (€990.1 million) in January, which was higher than the forecast £860 million (€978.2m). Fullprice sales rose by 6.9 per cent yearonyear. The group, which raised prices to counteract higher costs, said price inflation was likely to be more benign than previously predicted.
