UK clothing retailer Karen Millen has acquired parts of the Coast fashion business that has gone into administration, preserving about 600 jobs.
PwC were appointed as administrators of Coast Holdings Limited, Coast Retail Limited, and Coast Fashions Limited yesterday (11 October).
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Immediately following the appointment, Karen Millen acquired certain parts of the business and assets, which will trade primarily online and in UK concessions. Karen Millen will also continue to work with existing wholesale and franchise partners.
The business sells premium occasion wear, which under Karen Millen will trade across its various websites, concessions across the UK and Republic of Ireland and through wholesale and franchise partners.
While the sale has preserved about 600 jobs and will minimise disruption to key customers, 24 retail stores were not included in the transaction.
Mike Denny, joint administrator and PwC director, said the firm will make every effort to help those employees in parts of the business that were not included in the sale and will support those affected by liaising with the Redundancy Payments Service and Job Centre Plus.
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By GlobalDataHe added: “The businesses had been facing financial difficulties due to structural challenges in the retail space and specifically the concession partner market, as well as a softening of demand for occasion wear.
“This sale puts the ongoing business on a firmer financial footing. Karen Millen will be working with the existing management team to continue to grow and develop the new business.”
