Next eyes Cath Kidston acquisition
Sky said that PwC has been advising Hilco on a potential sale of the brand for several weeks, and is understood to have held talks with a number of potential bidders
Next is reportedly in advanced talks to rescue the Cath Kidston brand, in a move that would further expand its portfolio following the acquisitions of Joules and Made last year.
According to Sky News, a deal could be closed as early as today (28 March), though some sources told Sky that while an agreement was “likely”, it was not certain.
Cath Kidston is currently owned by retail investor Hilco Capital, who has reportedly been approached by a “number” of potential buyers who are interested in acquiring the modern vintage brand.
Sky said that PwC has been advising Hilco on a potential sale of the brand for several weeks, and is understood to have held talks with a number of potential bidders.
Hilco acquired Cath Kidston last July after the brand was put up for sale by its owner at the time, Baring Private Equity Asia (BPEA).
BPEA first took control of Cath Kidston in 2016 and later agreed on a pre-pack insolvency deal which led to the closure of its entire UK high street estate.
Cath Kidston collapsed into administration in April 2020 with the loss of nearly 1,000 jobs after sales suffered during the pandemic. It was bought out of administration by BPEA.
The addition of Cath Kidston to Next would mark a further expansion to its portfolio after the business acquired Joules and Made last year.
Last December, Joules confirmed that its founder Tom Joule partnered with Next to acquire the majority of assets of Joules for a total cash consideration of £34m.
The month before, Next acquired the Made.com brand for £3.4m following the furniture retailer’s collapse into administration.
Next has been contacted for further comment.
