In a significant move that shakes up the British retail landscape, high street titan Next has acquired the beloved vintage-inspired brand Cath Kidston out of administration.
The deal, confirmed on Tuesday, safeguards the future of the iconic brand and preserves 125 jobs. However, it marks the end of an era for the brand's physical presence, as the acquisition does not include any of its UK stores, which will all close their doors for good.
What's Included in the Deal?
Next has purchased the Cath Kidston brand name, its valuable intellectual property, and all domain names. The retail conglomerate plans to integrate the brand into its highly successful Total Platform operation.
This model will see Next manage Cath Kidston's online presence, wholesale, and franchise partnerships, leveraging its vast infrastructure to drive the brand's future growth.
A Bittersweet Rescue for the High Street
The acquisition is a classic case of a high street rescue, a strategy Next has perfected in recent years. While the brand itself is saved, the deal results in the immediate closure of all four remaining Cath Kidston stores in the UK, located in Ashford, Cheshire Oaks, Fosse Park, and London's Battersea.
This follows a previous restructuring in 2020, which saw the closure of 60 stores and 900 job losses, a move that was intended to secure the brand's long-term future.
Why Next is the Perfect Fit
Next's powerful online platform and logistics network make it an ideal home for heritage brands struggling to adapt to the modern retail environment. The Cath Kidston brand, known for its nostalgic floral prints and patterns, will benefit from Next's digital expertise and operational scale.
A spokesperson for the joint administrators from FRP Advisory confirmed the sale, stating it provided the best outcome for creditors and ensured the famous brand would continue to trade under new ownership.
This acquisition further solidifies Next's position as a dominant force in UK retail, acting as a lifeline for distressed brands while strategically expanding its own portfolio.
