PwC Advises Hilco on Potential Sale of Vintage Retailer

  • Next in advanced talks to acquire Cath Kidston brand
  • PwC advising Hilco on potential sale of the brand
  • Talks held with multiple potential bidders
  • Cath Kidston acquired by Hilco Capital in July 2021 after BPEA ownership
  • Brand collapsed into administration in April 2020, leading to job losses
  • Next’s portfolio expanded with Joules and Made acquisitions last year

Next is reportedly in advanced talks to acquire the Cath Kidston brand, following its acquisitions of Joules and Made last year. Sky News reports that a deal could be closed as early as today (28 March), though some sources say it’s not certain yet. PwC has been advising Hilco on a potential sale for several weeks and held talks with multiple potential bidders. Cath Kidston was acquired by Hilco Capital in July 2021 after being put up for sale by Baring Private Equity Asia (BPEA), which took control of the brand in 2016 and later agreed on a pre-pack insolvency deal that led to the closure of its UK high street estate. The company collapsed into administration in April 2020, resulting in nearly 1,000 job losses. If the acquisition goes through, it would mark Next’s portfolio expansion after acquiring Joules and Made last year.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about the potential acquisition of Cath Kidston by Next, including details on the current ownership, previous acquisitions by Next, and the involvement of PwC in advising Hilco Capital. It also mentions the background of Cath Kidston’s financial situation and its previous owners.
Noise Level: 2
Noise Justification: The article provides relevant information about a potential acquisition of Cath Kidston by Next, but lacks in-depth analysis or exploration of long-term trends and consequences. It mainly reports on the news without adding much value or context.
Financial Relevance: Yes
Financial Markets Impacted: Next, Joules, and Made
Financial Rating Justification: The article discusses acquisitions of companies in the retail sector, which can impact their respective stock prices and financial performance. It also mentions the acquisition of Cath Kidston by Next, which could affect the financial markets as it expands its portfolio.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text. The situation described involves business acquisitions and brand sales, with some job losses due to the pandemic.

Reported publicly: www.retailsector.co.uk