Baring Private Equity Asia, which owns struggling vintage fashion retailer Cath Kidston, is buying back its online arm as part of a prepack administration, putting 60 stores at risk of permanent closure.
Baring Asia, which bought the business in 2016, will acquire the Cath Kidston franchise and e-commerce and wholesale operations through its subsidiary CK Acquisitions.
The deal excluded its 60-store estate, which now hangs in the balance. Its portfolio measures a combined 122,000 sq ft, according to Radius Data Exchange.
Cath Kidston had drafted in advisers from Alvarez & Marsal last month to review the retailer’s options for the future.
Melinda Paraie, chief executive 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.
“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.
“We now look to the future and are focused on transforming Cath Kidston into a brand-first, digital-led business with a continuing mission to brighten customers’ lives with our much-loved, British-inspired prints and designs.”
A spokesperson for Baring Private Equity Asia said: “Going forward we will continue to help the company grow through its e-commerce platform and international wholesale and franchise businesses.”
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