29 March 2023 , 06:46
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Next has bought the Cath Kidston brand name, domain names and intellectual property in a deal worth £8.5million.
But the four remaining Cath Kidston shops in London, Ashford, Cheshire Oaks and York were not included as part of the agreement.
Administrators PwC said the shops would stay open while "operations are wound down" but added there would be redundancies.
The brand’s website is also being licensed back to the administrators for 12 weeks.
Zelf Hussain, joint administrator and partner at PwC, said: “Cath Kidston is a well-loved lifestyle brand founded in 1993 and I am pleased to say that it has been bought by Next who will make sure it continues to flower under their ownership.
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“The company has over recent years navigated through incredibly challenging market conditions including the pandemic restrictions, and most recently the decline in consumer spending driven by cost of living pressures and rising costs.”
“In the short term its four stores will continue to remain open whilst operations are wound down."
The vintage-inspired clothing and homeware chain became one of the latest high street retailers to fall into financial difficulty this year
Cath Kidston has also become the latest struggling retailer Next has swooped in to purchase.
Next snapped up Made.com for £3.4million in November 2022 after the online furniture retailer crashed into administration.
Just one month later, Next also went on to save fashion group Joules in a deal worth £34million.
Next has over 500 stores across the UK.
Cath Kidston, meanwhile, has closed dozens of shops over the last few years, with only four now remaining in the UK.
It crashed into administration in 2020 with the loss of nearly 1,000 jobs but was rescued following a deal by Baring Private Equity Asia (BPEA).
But the arrangement saw all its physical stores close, in yet another blow for the UK high street, with its presence still mainly online today.
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BPEA had been a Cath Kidston shareholder since 2014, took full control of the business in 2016, and went on to exit the company altogether in July 2022.
Cath Kidston has been owned by Hilco Capital ever since - meaning its last big takeover happened less than a year ago.
Cath Kidston was set up in 1993 by its eponymous owner, with the first store opening the following year in London's Holland Park.
At its peak the brand had more than 200 outlets across the world, including a flagship store in Piccadilly.
On an episode of Desert Island Discs Ms Kidston, now aged 64, described the store as like "Marmite".
"People either love it and want a little bit of it very much, or want to stab us," she said at the time.