Unsecured creditors of Cath Kidston are owed around £90m and will only receive a small dividend after its pre-pack administration.
The lifestyle retailer’s owner, Baring Private Equity Asia, bought the online, franchise and wholesale business in a pre-pack deal last month, resulting in the closure of 60 stores and more than 900 redundancies. The private equity firm has held a stake in Cath Kidston since 2014.
Creditors include landlords and HM Revenue and Customs, according to documents filed by administrator Alvarez & Marsal at Companies House.
Three solvent offers were made for the company by bidders but were rejected by Baring Private Equity Asia due to insufficient detail in post-acquisition business plans or unsatisfactory proof of funding.
The business was deemed no longer viable due to an unprecedented drop in sales after the government forced all non-essential retail stores to close in March.
Drapers’ coronavirus update:
We’re working to keep delivering to your doorstep. If your magazine is delivered to your office and you’d like to change this, please email email@example.com or call 01604 828 705.
As a subscriber you can also read the digital editions of the magazine, which can be found under the ‘My Account’ tab on the main navigation bar.