Baring Private Equity Asia has struck a pre-pack deal orchestrated by Alvarez & Marsal, to retain the online trading, wholesale and franchise business Cath Kidston whilst shedding the UK retail chain which comprises 60 stores. This will ‘save’ just thirty two jobs in total and see 908 staff facing redundancy. 820 staff had been furloughed on March 22nd and there are reports that affected staff have been not been paid as promised by the business and that all have been summarily referred to the government in respect of their redundancy claims.
Melinda Paraie who, we understand, retains the role of CEO for 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 a 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.”
“Like every retailer, Cath Kidston has faced significant challenges in recent years, including high rents and changing consumer behaviours. These challenges have been exacerbated by the outbreak of Covid-19, which has been impacting the business globally since the beginning of the year,” added Richard Fleming of Alvarez & Marsal’s UK office.
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