Retailer Cath Kidston in race to find a buyer

FASHION and home retailer Cath Kidston is looking for a buyer to save the business as the coronavirus lockdown wreaks havoc on the high street.

The shop, which is known for its floral and polka dot designs, has appointed advisers from restructuring experts Alvarez and Marsal to work on a strategic review.

The firm has told potential buyers to act quickly and fears insolvency is one possible outcome if a buyer cannot be found, according to a Sky

News report. The move comes after fashion and furnishings retailer Laura Ashley last week filed for administration, saying rescue talks had been thwarted by the coronavirus outbreak.

Cath Kidston was set up by its eponymous founder in 1993. The British designer made a multi-million pound fortune after selling a stake to American private equity firm TA Associates in a deal that valued the business at £100million.

TA Associates sold to another investment firm, Baring Private Equity Asia, that wanted to back the company’s expansion in the Far East, leading to the opening of its 100th store in Seoul, South Korea.

The retailer now employs around 800 people and has about 200 stores worldwide.

However, the company lost £27 million in the last two years and a further £11million in the nine months to December 2019, according to reports.

A spokesman for the retailer said: ‘Cath Kidston has been actively implementing a new business strategy to support the growth of the brand while managing the many pressures in the retail sector.

‘We have therefore initiated a process to explore options for the business, to enable the management team to continue implementing their strategy to deliver growth.’