LONDON, United Kingdom — British clothing retailer Karen Millen has bought parts of the Coast fashion brand, which has gone into administration, PricewaterhouseCoopers (PwC) said on Thursday.
Mike Denny, joint administrator and PwC director, said 24 Coast retail stores were not included in the sale to Karen Millen and would thus result in job cuts.
PwC said Karen Millen has retained 600 jobs at Coast.
"The businesses had been facing financial difficulties due to structural challenges in the retail space and specifically the concession partner market, as well as a softening of demand for occasion wear," Denny said in a statement.
"This sale puts the ongoing business on a firmer financial footing. Karen Millen will be working with the existing management team to continue to grow and develop the new business."
Mike Denny, Ian Green and Zelf Hussain of PwC have been appointed as joint administrators of Coast Holdings Limited, Coast Retail Limited and Coast Fashions Limited, PwC said.
By Gaurika Juneja; editor: by Susan Fenton.