Next has paid £8.5m for struggling home furnishing retailer Cath Kidston in a move that will result in a number of redundancies, administrators have said.
Sky News revealed on Monday how the FTSE 100 giant was in advanced talks to add to its recent acquisitions including Made, the online furniture retailer, and Joules, the fashion group.
Next said it had bought the brand name, domain names and intellectual property.
Administrators at PwC said the purchase would allow the company to “flower” under Next’s ownership after Hilco started a sale process involving a number of bidders.
Joint administrator Zelf Hussain said: “The company has over recent years navigated through incredibly challenging market conditions including the pandemic restrictions, and most recently the decline in consumer spending driven by cost of living pressures and rising costs.
“In the short term its four stores (London, York, Ashford, Cheshire Oaks) will continue to remain open whilst operations are wound down.
“Sadly, there will be redundancies during this period of wind down and we will continue to support the staff throughout this period.”
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The company employs 125 people.
Next confirmed that the cathkidston.com domain would be licenced back to the administrators for a period of up to 12 weeks to effect stock clearance before a relaunch.
It was established by its eponymous founder in 1993, and became a high street fixture with scores of standalone shops.
Like many retailers, however, its fortunes were hit by the pandemic, forcing it into insolvency about three years ago with the loss of 1,000 jobs.
It was bought out of administration little more than two years ago by Baring Private Equity Asia before Hilco acquired it just over a year later.
