Next has strategically acquired Cath Kidston’s brand assets for £8.5 million, marking a significant expansion in its retail portfolio.
- Cath Kidston’s business went into administration, leading to Next acquiring its intellectual property through a pre-pack deal.
- Next will control Cath Kidston’s brand name, domain names, and intellectual property, revitalizing the brand under its management.
- Current Cath Kidston stores will remain operational for up to 12 weeks to clear existing stock while under administrator control.
- The acquisition reflects Next’s pattern of purchasing struggling brands, as it did with Joules and Made.com.
Next has strategically moved to expand its brand portfolio by acquiring Cath Kidston’s brand name, domain names, and intellectual property for £8.5 million. The decision followed Cath Kidston’s entry into administration, prompted by market challenges and a decline in consumer spending. This acquisition falls under a pre-pack arrangement, which allows Next to integrate Cath Kidston’s valuable assets swiftly into its operations.
The acquisition signifies Next’s control over Cath Kidston’s intellectual property, ensuring the brand’s continuity under Next’s reputed management. Notably, the cathkidston.com domain has been licensed back to the administrators for a limited period of up to 12 weeks. This agreement aims to facilitate the clearance of remaining stock before the brand transitions to full Next ownership.
Cath Kidston’s administration, led by Zelf Hussain and Rachael Wilkinson from PwC, involves maintaining store operations in London, Ashford, Cheshire Oaks, and York temporarily. During this period, stores will function to deplete current inventory, followed by permanent closure. This move is part of the administration process to handle assets while addressing the workforce’s needs.
In light of the acquisition, Next’s history of rescuing distressed brands continues. Last year, it acquired Joules and Made.com, following a similar strategy. The absorption of Cath Kidston reflects its ongoing commitment to bolster its market position by leveraging established yet struggling retail names.
Cath Kidston, originally founded in 1993, has faced several market adversities, including the pandemic and rising living costs, impacting its financial stability. These pressures culminated in Hilco’s decision to sell the brand only eight months after purchase, highlighting the volatile conditions of the retail industry.
Next’s acquisition of Cath Kidston underscores its strategic approach to expand through acquiring established brands under financial distress.
