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Cath Kidston creditors owed millions

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.

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