Cath Kidston lines up administrators as vintage retailer races to find buyer
VINTAGE furnishings and fashion chain Cath Kidston is lining up administrators to save it from going under.
reports that Cath Kidston filed a notice of intention to appoint Alvarez & Marsal (A&M) as its administrator on Friday, April 3.
Cath Kidston has 60 shops throughout the UK, employing around 800 people.
The move doesn't mean Cath Kidston will automatically fall into administration, but it buys the company ten days' breathing space from creditors.
It comes after the high street retailer was reported to be racing to find a buyer last month, in a bid to stop it from going bust.
Cath Kidston is owned by Baring Private Equity Asia.
Trouble on the high street
CATH Kidston could become the latest high street tragedy.
In 2019 and so far in 2020 we've seen:
- Debenhams axe 22 of its 50 branches
- Forever21 close 350 stores with its UK branches also at risk
- Jamie Oliver's "Jamie's Italian" chain go bust, alongside his Fifteen and Barbecoa restaurants
- Links of London go into administration putting 350 jobs at risk
- Marks and Spencer close 35 more stores as it pushes forward with plans to axe 145 shops across the UK
- Dozens of Monsoon and Accessorize stores close
- While struggling shoe shop Office has said it "could close shops" as part of restructuring plans
- Fears Pizza Express could be next to go into administration as it "brings in emergency advisers"
- Hairdressing chain Supercuts went into administration in October putting 1,200 jobs and 220 salons at risk
- Maternity and baby retailer Mothercare collapsed into administration in November after 58 years on the high street, putting 2,500 jobs at risk
- Department store chain Beales went into administration in January 2020 with 23 shops and 1,052 jobs at risk
- High end fashion brand Ted Baker said it plans to axe 160 jobs in February
- Mobile phone retailer Carphone Warehose said in March that it'll close all 531 standalone stores in April
A Cath Kidston spokesperson told The Sun: "The notice of intention forms part of the process by which Cath Kidston is continuing to work with Alvarez & Marsal to explore all options for the company in the current climate."
Cath Kidston has lost more than £27million in the past two financial years, despite attempting to slash costs by axing 40 per cent of its head office staff and closing several stores.
The coronavirus outbreak has further impacted the brand, Cath Kidston has previously said.
Cath Kidston was set up by its eponymous former boss in 1993 and has more than 200 outlets globally.
Its flagship Picadilly Circus store in London opened in 2016.
After initially being privately owned, Cath Kidston was sold to a private equity firm in 2010, in a deal that was reported to be worth £100million.
Baring Private Equity became a substantial shareholders in 2014 and then went on to take control in 2016.
The brand drafted in a new CEO in 2018, Melinda Paraie, who joined from Coach.
It comes 24 hours after Debenhams was reported to be just days away from falling into administration, putting 20,000 jobs at risk.
And last month, Laura Ashley was forced to shut down 70 stores.
In November, Mothercare collapsed into administration after 58 years on the high street.