Cath Kidston to close ALL 60 shops with the loss of 900 jobs
CATH Kidston is to close all 60 of its UK stores as it disappears from the high street.
The owners of the firm have struck a pre-pack administration deal which means it will still continue to trade online – but it comes with the loss of 908 jobs.
The vintage furnishings and fashion chain appointed Alvarez & Marsal (A&M) as its administrators on Friday, April 3.
Today, the retailer confirmed that its parent company, Baring Private Equity Asia, will buy the brand, as well as its e-commerce and wholesale side of the businesses from administrators.
Only 32 out of the retailer’s 940 UK employees will retain their jobs to continue running the business online.
Melinda Paraie, CEO of Cath Kidston, said: “While we are pleased that the future of Cath Kidston has been secured, this is obviously an extremely difficult day as we say goodbye to many colleagues.
Trouble on the high street
IN 2019 and so far in 2020 we've seen:
- Debenhams axe 22 of its 50 branches. It’s now fallen into administration
- Laura Ashley go into administration, closing 70 branches and putting 721 jobs at risk
- 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 Officehas 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 Supercutswent 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 Bealeswent 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
“Despite our very best efforts, against the backdrop of COVID-19, we were unable to secure a solvent sale of the business which would have allowed us to avoid administration and carry on trading in our current form.”
A spokesperson for Baring Private Equity Asia (BPEA), said: “While we are disappointed that the COVID-19 crisis has resulted in the cessation of the retail store network and impacted many employees, we are pleased to have secured a future for a number of Cath Kidston staff and the Cath Kidston brand in the form of a viable digital business.”
Cath Kidston had been struggling to find a buyer last month in a bid to stop it from going bust.
It has lost more than £27million in the past two financial years, despite axing 40 per cent of its head office and closing several stores to cut costs.
But the coronavirus lockdown further impacted the company and now the stores will not reopen once the measures are lifted.
The brand was set up by Cath Kidston in 1993 and has more than 200 outlets around the world.
After initially being privately owned, Cath Kidston was sold to a private equity firm in 2010 in a deal 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.