CK Acquisitions Limited (Cath Kidston)

Retail Giant Next has agreed to acquire the brand name, domain names and intellectual property of retailer Cath Kidston, marking its third distressed purchase in recent months.

Cath Kidston Limited (now known as CKL Acquisitions Limited), a home furnishing retail company, entered administration on 20 April 2020, after the COVID-19 pandemic exacerbated the cash flow and other financial issues the company was already suffering.

On their appointment as Joint Administrators, Mark Firmin and Richard Fleming of Alvarez & Marsal completed a pre-pack sale of certain of the business and assets of the company to CK Acquisitions Limited, a connected company wholly-owned by Baring Private Equity Asia V Holding (18) Limited, which purchased the company by way of a credit bid. The company's 60 high street locations were closed at this time, leaving only the online business and certain wholesale and franchise outlets in operation.

In summer 2022, Hilco Capital (which owns Homebase and HMV) acquired the company. Less than a year later, in February 2023, Hilco engaged PwC to advise on a potential sale of the brand.

Ultimately, Rachael Wilkinson and Zelf Hussain of PwC were appointed as Joint Administrators of CK Acquisitions Limited on 28 March, and completed a pre-pack sale of the company's brand name, domain names and intellectual property to Next for £8.5 million.

The company's four remaining UK stores will reportedly be closed down following a period of trading down stock by the Joint Administrators.

This acquisition is the third distressed deal completed by Next in recent months. The retail giant acquired the brand, domain, and intellectual property of made.com in November 2022, and a majority of Joules' business and assets through a joint venture company set up with Tom Joule in December 2022.

No reports have been rendered in the administration of CK Acquisitions Limited at this time, but a number have been rendered in the administration of CKL Acquisitions Limited (the initial owner of the Cath Kidston brand). The latest progress report in that administration can be found HERE.