Women’s fashion chain Coast has become the latest high street casualty, with Mike Denny, Ian Green and Zelf Hussain of PwC appointed as joint administrators, in a move which will see the retailer’s shops close but with a deal to retain an online presence
Immediately following the appointment of the administrators, who are dealing with Coast Holdings Ltd, Coast Retail Ltd and Coast Fashions Ltd, Karen Millen acquired parts of the business and certain 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. However, 24 retail stores were not included in the transaction, with the loss of around 300 jobs.
PwC said the sale to Karen Millen has preserved around 600 jobs and will minimise disruption to key customers.
Mike Denny, joint administrator and PwC director, said: ‘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.’
Report by Pat Sweet
