Cath Kidston to close UK stores and stronger focus on Asia
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British home-furnishings and apparel retailer Cath Kidston will permanently close all 60 of its stores in the UK, realigning itself as a wholesaler and online brand.
The locations, currently shuttered due to the coronavirus lockdown, will not reopen once the crisis is over following its parent company Baring Private Equity Asia securing a pre-pack administration deal under which it bought back the brand and online operations.
The firm’s stores in Asia, including Malaysia, will continue to trade as normal after lockdowns are lifted.
The closure of physical stores in Britain has put 908 staff out of work, with only 32 positions spared.
Measures to revive the flailing business were apparently working before the emergence of the coronavirus outbreak.
“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,” said Cath Kidston CEO Melinda Paraie. “Despite our very best efforts, against the 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.
The brand will live on in the territory as a digital business.
“Going forward we will continue to help the company grow through its e-commerce platform and international wholesale and franchise businesses,” said a spokesperson for Baring Private Equity Asia, adding that the firm’s management had established “a viable future for the business in the UK.”
Questions & Answers
Q.What will happen to the Cath Kidston stores in the UK after the coronavirus lockdown ends?
What will happen to the Cath Kidston stores in the UK after the coronavirus lockdown ends?
All 60 Cath Kidston stores in the UK will be permanently closed and will not reopen once the coronavirus lockdown is over. This decision was made after a pre-pack administration deal was secured.
Q.Will Cath Kidston still have a presence in the UK market?
Will Cath Kidston still have a presence in the UK market?
Yes, the brand will continue to operate in the UK as a digital business, focusing on its e-commerce platform. It will also grow through international wholesale and franchise businesses.
Q.How many staff in the UK have lost their jobs due to these store closures?
How many staff in the UK have lost their jobs due to these store closures?
The closure of the physical stores in Britain has resulted in 908 staff members losing their jobs. Only 32 positions within the company were spared from this decision.
Q.Are Cath Kidston's stores in Asia also affected by these closures?
Are Cath Kidston's stores in Asia also affected by these closures?
No, the firm's stores in Asia, including those in Malaysia, will continue to trade as normal. They are expected to reopen once the various lockdowns in those regions are lifted.