Karen Millen buys Coast out of administration

Karen Millen has acquired certain parts of fashion retailer Coast, after the latter appointed PwC as administrators yesterday.

Karen Millen agreed to buy Coast’s UK concessions portfolio and online businesses, and will also trade through wholesale and franchise partners.

As a result, 600 jobs will be saved.

photo courtesy of Coast

However, Coast’s standalone stores and concessions on mainland Europe were not included in the deal, therefore impacting around 300 jobs.

Karen Millen added that Coast gift cards and returns will continue to be honoured.

“We are excited to be welcoming over 600 Coast employees to the Karen Millen family,” chief executive Beth Butterwick said.

“With its beautiful fabrics, stunning colours and signature designs, Coast is a much-loved fashion brand that has dressed women for all occasions since 1996.

“Our expertise and infrastructure puts us in a unique position to create a lean and profitable business, ensuring it remains a thriving destination in department stores and online.”

Coast was formerly part of the Aurora Fashions group, which in turn is owned by Icelandic bank Kaupthing.

Karen Millen is also owned by Kaupthing.

Aurora Fashions had ramped up its search for a new buyer as a result of House of Fraser’s demise weighing on Coast’s margins.

Coast was reportedly owed more than GBP 931000 by the department store chain when fell into administration in August.