Next in talks on Cath Kidston buy, deal possibly imminent
Next is back on the acquisition trail. The retail giant, which delivers its results later this week, is reportedly in “advanced talks” about buying troubled Cath Kidston.
The company could announce a deal as soon as Tuesday, Sky News reported, with sources telling it that a successful outcome was “likely but not certain”.
Cath Kidston has been owned by Hilco Capital for the best part of a year and Next’s interest in it comes as the company continues to build up its portfolio of well-known names in need of a deep-pocketed retail expert.
Like retail peers Frasers Group and M&S, Next has swooped on a number of such brands, its most recent buys being Joules and Made.
Turnaround specialist Hilco bought Cath Kidston in 2022 and is understood to have held talks with several parties as it seeks a buyer for the business.
Cath Kidston came into its hands after a troubled few years. It went into administration in 2020 as the pandemic hit and was bought in a pre-pack deal by its existing owner Baring Private Equity Asia.
That resulted in the closure of the bulk of its store estate and the loss of almost 1,000 jobs.
But the business appears to have been picking up with it saying last year that it was performing strongly and orders from international and UK franchisees and wholesale partners grew 40% for the year ending March 2022.
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