Baring Private Equity Asia Searches for Buyer Two Years Post-Administration

  • Cath Kidston put up for sale two years after collapse
  • Baring Private Equity Asia instructed PwC to find a buyer
  • Advisers at PwC have been engaging with prospective buyers for weeks
  • Retailer retains fewer than a handful of stores in Saudi Arabia

Cath Kidston, a fashion and homeware brand, has been put up for sale two years after collapsing into administration, resulting in the loss of nearly 1000 jobs. Baring Private Equity Asia (BPEA), a substantial shareholder, has reportedly asked PwC to find a new owner for the now wholesale-led company. Sky News stated that PwC has been working with potential buyers for several weeks, although their identities remain undisclosed. Cath Kidston fell into administration in April 2020 due to pandemic impacts. BPEA took full control of the company in 2016 and closed its entire high street estate through a pre-pack insolvency deal. The retailer has been led by Melinda Paraie since 2018, who joined from luxury goods brand Coach. It evolved from a single West London shop selling car boot finds and vintage fabric into a business offering fashion, homewares, and accessories. Cath Kidston made a fortune for its founder when she sold a stake to private equity firm TA Associates in a 2009 deal worth £100m.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Cath Kidston’s sale after collapsing into administration, the involvement of Baring Private Equity Asia (BPEA), and the company’s history. It also mentions the impact of the pandemic on its operations and the involvement of Melinda Paraie as CEO. The article is informative without any significant issues related to digressions, misleading information, sensationalism, redundancy, or personal perspective.
Noise Level: 3
Noise Justification: The article provides relevant information about Cath Kidston’s sale and its history but lacks analysis or exploration of broader trends or consequences. It could benefit from more context on the retail industry and potential lessons learned.
Financial Relevance: Yes
Financial Markets Impacted: Cath Kidston’s sale impacts the retail and fashion industries
Financial Rating Justification: The article discusses the financial situation of Cath Kidston, a fashion and homeware brand that has collapsed into administration, leading to job losses. It also mentions Baring Private Equity Asia (BPEA) seeking a new owner for the company. This pertains to financial topics as it involves business operations and the potential impact on the retail and fashion industries.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: Cath Kidston’s collapse is due to the impact of the pandemic, but it does not involve any major deaths, injuries, or significant damage to infrastructure. The economic impact and job losses are considerable, but not catastrophic.

Reported publicly: www.retailsector.co.uk