Cath Kidston, which many once viewed as Laura Ashley for a younger market, is in search of a buyer. It has drafted in Alvarez & Marsal to conduct an urgent strategic review and seek a saviour for the business which employs around 800 staff and has 60 UK stores plus a further 140 stores overseas. An administration has not been ruled out.
The business, owned by Baring Private Equity Asia, had historically enjoyed strong sales in the Far East and also benefited from tourists from the Far East visiting the UK and boosting its store sales here. It has, however, been loss-making for three years which means that its current crisis cannot be wholly attributed to coronavirus.
Operating costs had been reduced via the closure of unprofitable stores as well as a reduction in headcount over the last two years. It is also understood that Cath Kidston has re-platformed its website in order to boost online sales.
A spokesperson said: “Cath Kidston has been actively implementing a new business strategy to support the growth of the brand while managing the many pressures in the retail sector. This includes dealing with the outbreak of Covid-19, which has been impacting the business globally since the beginning of the year. We have therefore initiated a process to explore options for the business, to enable the management team to continue implementing their strategy to deliver growth.”
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