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Tag: Cath Kidston

  • Cath Kidston to close UK stores and stronger focus on Asia

    Cath Kidston to close UK stores and stronger focus on Asia

    British home-furnishings and apparel retailer Cath Kidston will permanently close all 60 of its stores in the UK, realigning itself as a wholesaler and online brand.

    The locations, currently shuttered due to the coronavirus lockdown, will not reopen once the crisis is over following its parent company Baring Private Equity Asia securing a pre-pack administration deal under which it bought back the brand and online operations.

    The firm’s stores in Asia, including Malaysia, will continue to trade as normal after lockdowns are lifted.

    The closure of physical stores in Britain has put 908 staff out of work, with only 32 positions spared.

    Measures to revive the flailing business were apparently working before the emergence of the coronavirus outbreak.

    “While we are pleased that the future of Cath Kidston has been secured, this is obviously an extremely difficult day as we say goodbye to many colleagues,” said Cath Kidston CEO Melinda Paraie. “Despite our very best efforts, against the backdrop of Covid-19, we were unable to secure a solvent sale of the business which would have allowed us to avoid administration and carry on trading in our current form.

    The brand will live on in the territory as a digital business.

    “Going forward we will continue to help the company grow through its e-commerce platform and international wholesale and franchise businesses,” said a spokesperson for Baring Private Equity Asia, adding that the firm’s management had established “a viable future for the business in the UK.”

  • Cath Kidston seeks white knight buyer as strategic review ordered

    Cath Kidston seeks white knight buyer as strategic review ordered

    Cath Kidston has hired external advisers to complete an urgent review of strategic options for the business as it makes a last-minute appeal for a white knight rescuer.

    Owned by Baring Private Equity Asia, the UK-headquartered clothing and homewares retailer was already struggling financially before the advent of the coronavirus which has forced stores to close in multiple markets and seen consumers suspend discretionary shopping.

    The company has about 100 stores internationally, mostly in Asia, and about 60 in the UK with a global payroll of around 2700.

    During the past two full trading years, its losses have totaled around US$31 million and companies invited to submit bids for the business have reportedly been told the company lost a further $13 million in the nine months to last December.

    According to UK media reports, the new CEO Melinda Paraie had achieved some success in turning the company around prior to the advent of the coronavirus crisis. Underperforming stores had been closed, head office staff ranks culled and resources deployed to increasing online sales.

    According to a Sky News report in the UK, potential bidders have been told to submit bids imminently.

    If Cath Kidston collapses, it will follow fellow Asian-owned retail business Laura Ashley, which called in administrators last week. Both brands operate a similar hybrid fashion-homewares retail offer.

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  • Cath Kidston Japan surges but not enough

    Cath Kidston Japan surges but not enough

    Cath Kidston Japan sales outperformed every other market in the year to March, but not enough to stem losses by the UK-based company. Sales in Japan rose by 5.4 per cent after a net four new stores took the brand’s network there to 32. Ten more Cath Kidston Japan stores are planned there next year.

    In China, Cath Kidston also performed well, aided by a new franchise deal which will see 50 shops opened over the next five years.

    “The brand clearly continues to resonate with our loyal customer base, particularly in the UK and Asia,” said CEO Melinda Paraie.

    “During the period the group continued to grow top-line sales, despite significant headwinds in some of the markets in which we operate,” she said.

    “We are particularly pleased with the significant growth in ecommerce sales in both Japan and the UK, where a strong performance on Black Friday contributed to our best-ever week online.”

    Despite the positive Asian results, Cath Kidston’s loss rose from £8.4 million in the 2017 financial year to £10.5 million this year. Paraie blamed “increased cost pressures from the weaker sterling” since the Brexit vote for the result. Worldwide sales rose 1.2 per cent to £130.7 million, with UK sales up by 5.1 per cent.

  • Cath Kidston to change focus on expansion

    Cath Kidston to change focus on expansion

    As Cath Kidston China scales back because of diluted profits, the British handmade accessory chain is rolling out an expansion in other parts of Asia.

    It’s prime focus is Japan, where it plans to nearly double its presence over the next three years. South Korea and Thailand are the next two markets flagged for growth.

    CEO Kenny Wilson says the company plans to expand to about 55 stores in Japan, a decision based on two independent studies. Known for its flowery prints, the brand is likely to pop up soon in prime spots such as Tokyo’s Shibuya and Shinjuku shopping districts as well as cities like Chiba and Shizuoka.

    Cath Kidston also plans to bolster its online presence by creating synergy between its physical stores and e-commerce shop.

    Wilson believes the brand’s initial success in Japan comes from its “pretty, feminine, cute and colourful” products. “I think people in Japan like our business, because they love handcraft.” Each Cath Kidston print is hand drawn.

    Meanwhile, the brand has been growing about 20 per cent on average across Asia Pacific and expects the demand for design-focused accessories to increase against a backdrop of continued economic growth.

    It has upped its output of leather products, tapping into the business market, while collaborative items with Disney have also helped boost sales.

    As high rents cut into profitability, the company has shifted its strategy in China. This will see it close more shops and concentrate on e-commerce.

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  • Cath Kidston’s new owners are taking on Asia

    Cath Kidston’s new owners are taking on Asia

    Cath Kidston Group has been acquired by Asian private equity company Baring Asia and its chairman is to step down. The lifestyle brand has attained new ownership after its previous majority stakeholder TA Associates sold its shares to Baring Asia, who have now become the controlling majority stakeholders. Paul Mason, who has been chairman of the group for six years, is to step down following the acquisition. He will be replaced by a senior advisor to Baring Asia and former chief executive of Gucci Wiliam Flanz.

    This comes as the brand continues expansion into the Asian market. With 70 per cent of its outlets located outside of the UK, Asia has been a key focus for the group in recent years. Its stores in the region have gone from 91 to 131 since 2014, when Baring Asia first invested in the company. The group was reportedly attracted to the group due to their expertise in the region, and its role as one of the most established private equity firms across Asia.

    It now has plans to open in India in Delhi and Mumbai this autumn.

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  • Joe and the Juice Singapore-bound

    Joe and the Juice Singapore-bound

    Danish chain Joe and the Juice will make its Southeast Asian debut in Singapore in the last quarter of this year.

    The hip juice bar brand will be brought to Singapore by Norbreeze Group, a retail specialist which incubates brands to unlock their growth potential.

    Two juice bars are scheduled to open in the leadup to Christmas, marking the brand’s first Southeast Asian stores after what Norbreeze describes as its “phenomenal success” in its home market of Denmark and broader Europe.

    “Norbreeze Group’s introduction of Joe and the Juice to Singapore is timely, with a distinctive shift towards healthy diets and lifestyles in the market,” the company said in a statement.

    “One of the very few contemporary cafe concepts in the world to offer fresh made to order fruit and vegetable juices, coffee and sandwiches, Joe and the Juice has become an overnight sensation across Europe as a pioneer with its unique concept to tap into the global juicing phenomenon.”

    Joe & the Juice will join brands like Daniel Wellington, Bering, Cath Kidston and Cocomi in Norbreeze Group’s portfolio of retail brands.

  • Cath Kidston buys Japanese franchise

    Cath Kidston buys Japanese franchise

    UK-headquartered Cath Kidston says it will buy out its Japanese franchise business.

    Store leases and stock will transfer to a wholly owned subsidiary Cath Kidston Japan on September 1.

    The move brings to an end a four year partnership started in 2011 with Sanei International, a subsidiary of TSI Holdings.

    Japan accounts for 20 per cent of Cath Kidston’s global sales with four consecutive years of sales growth driven largely by the home, childrenswear and bags categories.

    Cath Kidston CEO Kenny Wilson said Japan is the brand’s biggest international market outside the UK and a key part of its business strategy to globalise the brand.

    “During 2016 we will celebrate our tenth anniversary since opening the first store in Tokyo and we see real opportunities to grow the brand even further across Asia.

    “This is a unique opportunity to take full control of the Japanese business. Sanei International has been a trusted franchise partner and we have worked successfully together, helping to grow the portfolio to over 30 stores. Our desire to buy, and Sanei’s decision to sell back the business, fitted perfectly with each other’s strategy,” said Wilson.

    “We are grateful to the Sanei management team in developing the business over the past four years. We have been delighted by the response of the Japanese staff to our decision to take full ownership of the stores.”

    Cath Kidston now has stores in 16 countries including China, Hong Kong, Indonesia, Japan, Korea, Malaysia, Singapore, Taiwan, Thailand, Spain and France.

    In April this year, Cath Kidston opened its 200th overseas store in Beijing, China.