Hilco, a retail investor, is preparing to acquire Cath Kidston, the modern vintage brand that was recently acquired by its owner from management just two years ago.
Sky News has learned that Hilco, which has owned a host of well-known names on the street over the past two decades, has been holding detailed talks over the purchase of Cath Kidston from Baring Private Equity Asia (BPEA).
It was not clear on Tuesday night whether other potential buyers would continue to squabble to get the deal, though one source suggested that Hilco would indeed lose.
The proposed transaction is believed to be a solvent transaction, although other details remain unclear.
Cath Kidston collapses management in 2020 with the loss of nearly 1,000 jobs.
BPEA recently directed advisors at PricewaterhouseCoopers (PwC) to find new owners for the company that is currently leading wholesale.
Cath Kidston, founded by its eponymous founder in 1993, has become a fixture on the street with countless independent stores.
However, its fortunes have been affected by the pandemic, forcing it to enter administration in April 2020.
BPEA, which took full control of Cath Kidston in 2016, executed a pre-package default, which resulted in the closure of the entire UK high street property.
It still has fewer than a handful of stores in Saudi Arabia.
Known for her floral and polka-dot designs, Cath Kidston has been run for the past four years by Melinda Paraie, who joined as chief executive of luxury brand Coach in 2018.
It expanded from a single store in West London selling vintage footwear and fabrics into a business offering fashion, homeware and accessories.
The chain made a fortune for its founder when she sold a stake to private equity firm TA Associates about 12 years ago in a deal believed to be worth £100 million.
In 2014, Baring Private Equity Asia became a significant shareholder.
Hilco could not be contacted for comment.
