UK's Next buys troubled retailer Cath Kidston for $10.5 million

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(Reuters) -British clothing retailer Next Plc said on Tuesday it has bought struggling retailer Cath Kidston from its administrators for 8.5 million pounds ($10.49 million).

The domain will be licenced back to the administrators for up to 12 weeks to clear stock before a re-launch under Next's ownership.

Next will buy the brand name, domain names and intellectual property of Cath Kidston.

Cath Kidston, founded in 1993 and known for its floral vintage home-furnishing patterns, had filed for administration in 2020 after the pandemic forced it into insolvency. It was bought by retail investor Hilco Capital in June last year.

Next also bought collapsed online furniture retailer and clothing chain Joules last year.

The joint administrators of Cath Kidston said in a separate statement that its stores in London, Ashford, Cheshire Oaks and York - which together employ 125 people - will remain open to trade down stock before closing permanently.

($1 = 0.8100 pounds)

(Reporting by Sinchita Mitra in Bengaluru; Editing by Devika Syamnath)