The beloved British brand, Cath Kidston, has been sold to Hilco Capital, a restructuring specialist. The sale comes after weeks of speculation and sees Hilco Capital taking over the brand from its previous owner, Baring Private Equity Asia (BPEA). BPEA had been an investor in Cath Kidston for many years before gaining full control in 2016.

The financial details of the deal have not been disclosed. However, Hilco Capital has acquired a brand that is in a much stronger position than it was two years ago. Despite the challenges posed by the Covid-19 pandemic, Cath Kidston has performed strongly. It experienced a 40% growth in orders from international and UK franchisees and wholesale partners for the year ending March 2022.

Hilco Capital has expressed their admiration for the Cath Kidston brand, revealing that they have been a long-time fan. This is reassuring, considering the difficult period the brand went through in 2020. After filing for administration, Cath Kidston had to close its UK stores and make staff reductions. However, it later reopened its flagship store in London’s Piccadilly and shifted its focus to online operations. Sales for the year ending March 2022 reached £29 million, with a significant portion coming from online and physical retail presence. Cath Kidston still operates a flagship store in the UK, as well as 95 concessions, a wholesale business, and operations in 10 countries through international franchise partners.

Although Cath Kidston plans to expand in its home market, its international operations are crucial for future growth. Currently, 35% of the brand’s revenues come from outside of the UK. The company has identified the US and Japan as areas with significant growth potential and aims to expand its presence there.

In conclusion, the sale of Cath Kidston to Hilco Capital marks a new chapter for the brand. With strong performance and plans for expansion both domestically and internationally, Cath Kidston is well-positioned for continued success under its new ownership.

Useful links:
Official Cath Kidston website
Hilco Capital official website