Next has paid £8.5m for struggling home furnishing retailer Cath Kidston in a move that will result in a number of redundancies, administrators have said.

Sky News revealed on Monday how the FTSE 100 giant was in advanced talks to add to its recent acquisitions including Made, the online furniture retailer, and Joules, the fashion group.

Next said it had bought the brand name, domain names and intellectual property.

Administrators at PwC said the purchase would allow the company to “flower” under Next’s ownership after Hilco started a sale process involving a number of bidders.

Joint administrator Zelf Hussain said: “The company has over recent years navigated through incredibly challenging market conditions including the pandemic restrictions, and most recently the decline in consumer spending driven by cost of living pressures and rising costs.

“In the short term its four stores (London, York, Ashford, Cheshire Oaks) will continue to remain open whilst operations are wound down.

“Sadly, there will be redundancies during this period of wind down and we will continue to support the staff throughout this period.”

Read more from Sky News:
William Hill hit by record fine
Rising cost of groceries hits new record high – and the worst is yet to come

The company employs 125 people.

Next confirmed that the cathkidston.com domain would be licenced back to the administrators for a period of up to 12 weeks to effect stock clearance before a relaunch.

It was established by its eponymous founder in 1993, and became a high street fixture with scores of standalone shops.

Like many retailers, however, its fortunes were hit by the pandemic, forcing it into insolvency about three years ago with the loss of 1,000 jobs.

It was bought out of administration little more than two years ago by Baring Private Equity Asia before Hilco acquired it just over a year later.

Related posts:

Tech stock rally helps Nasdaq and S&P 500 to new record highs Quarantine rule change will ‘get global Britain back in business’ Facebook sees profits double to $10bn but warns of slowdown in months ahead CVC-backed Tipico places £1.5bn bet on William Hill bid Carbon dioxide producer hikes prices under deal to keep supplies going amid gas costs spike British Gas chief to waive £1.1m bonus as households face bill surge SWIFT sanctions could hurt Russia – but pain would also be felt by the West Tax rises or spending cuts needed to avoid ‘unsustainable’ public debt, watchdog warns British Airways check-in staff strike suspended as company makes improved pay offer, union says Manchester United shares tumble following report that bidders have fallen short Brexit, public borrowing and a post-pandemic London City watchdog on alert for failure of fintech Railsr