default-output-block.skip-main
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

Next Agrees to Buy Cath Kidston Out of Administration

The entrance to a Next store with the white sign over the doorway and shopping rails within the store.
Next Plc has agreed to buy fashion and homeware brand Cath Kidston after the chain collapsed into administration in another casualty of Britain’s cost-of-living crisis. (Shutterstock)

Next Plc has agreed to buy fashion and homeware brand Cath Kidston after the chain collapsed into administration in another casualty of Britain’s cost-of-living crisis.

The retailer will pay £8.5 million ($10.5 million) for the brand and isn’t buying its remaining stock of goods, according to people familiar with the matter, who asked not to be identified.

The four remaining stores are expected to close and 125 staff will be kept to sell off remaining inventory before being let go, according to a statement from the administrator, PwC.

Cath Kidston, known for its floral and polka dot patterns, has been owned by specialist retail investor Hilco Capital for less than a year.

The valuation shows the extent to which the brand has declined since Cath Kidston herself sold a stake in the company over a decade ago in a deal reported at the time to be worth around £100 million.

For Next, it’s the latest in a series of acquisitions as the retailer adds more brands to its offering. Next bought fashion chain Joules and furniture brand Made.com out of insolvency late last year.

Cath Kidston “has over recent years navigated through incredibly challenging market conditions including the pandemic restrictions, and most recently the decline in consumer spending driven by cost of living pressures and rising costs,” Zelf Hussain, joint administrator and partner at PwC, said in the statement.

By Sabah Meddings and Katie Linsell

Learn more:

Next Raises Profit Outlook as Hot Spell Spurs Fashion Buying

Next Plc raised its profit forecast as the hotter weather and return to formal events encouraged more Brits to buy summer clothing but warned that worsening inflation could hit consumer sentiment.

© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from Retail
Analysis and advice from the front lines of the retail transformation.

New CEO Tony Spring’s plan to shutter stores and improve products echoes previous efforts for revitalisation. To pull it off this time, the retailer must deliver transformational changes in the shopping experience.


In a partnership with resale service provider Reflaunt, the global logistics giant now offers a fulfilment, shipping and platforming solution for brand clients interested in entering the secondhand space.




view more

Subscribe to the BoF Daily Digest

The essential daily round-up of fashion news, analysis, and breaking news alerts.

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
BoF Professional Summit - New Frontiers: AI, Digital Culture and Virtual Worlds - March 22, 2024
© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy, Cookie Policy and Accessibility Statement.
BoF Professional Summit - New Frontiers: AI, Digital Culture and Virtual Worlds - March 22, 2024