Sign up USA
Proactive Investors - Run By Investors For Investors

Coast enters into administration after taking hit from House of Fraser collapse

Karen Millen has bought some parts of Coast, including the brand’s website and UK department store concessions
Coast was owned by Oasis and Warehouse owner Aurora fashion

Women’s fashion retailer Coast has entered administration after taking a hit following the collapse of concession partner House of Fraser.    

Karen Millen has bought some parts of the business, including the brand’s website and UK department store concessions. However, all 24 standalone Coast stores and European concessions will close.

Coast had concessions in House of Fraser and was owned millions after the department store collapsed earlier this year.

Sports Direct International PLC (LON:SPD) took over House of Fraser just hours after the chain went into administration in August with debts of close to £1bn. 

READ: Harrods of the High Street: Ashley's ambition as Sports Direct grabs House of Fraser for £90mln

Coast, which also has several concessions in struggling department store Debenhams PLC (LON:DEB), has appointed PwC as administrator.

PwC joint administrator and director Mike Denny 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.

“Regrettably, other parts of the business including 24 retail stores were not included in the transaction. We 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 at this difficult time by liaising with the Redundancy Payments Service and Job Centre Plus.”

Coast was owned by Oasis and Warehouse owner Aurora fashion. Karen Millen is owned by Icelandic bank Kaupthing, which controls Aurora.

READ: Patisserie Valerie faces closure if it can’t find a fresh injection of cash

High street retailers have come under increasing pressure from weak consumer confidence and online competition, leading to the demise of a number of chains including Maplin and Toys R Us.

Other retailers including Debenhams, New Look, Mothercare plc (LON:MTC), Homebase and Marks & Spencer Group PLC (LON:MKS) have had to close stores to cut costs following sluggish sales.

On Thursday cake chain Patisserie Valerie Holdings PLC (LON:CAKE) said it needed “an immediate injection of capital” if it is to stay afloat a day after suspending its shares and its chief financial officer while it investigated “significant, and potentially fraudulent, accounting irregularities”.

View full HOF profile View Profile

Related Articles

H&T Pawnbrokers store
July 02 2018
Last year the company saw gross profits jump 45% thanks to a booming personal loan book and robust sales of luxury second-hand watches and jewellery.
Flying Brands
July 17 2018
“We look forward to the future with confidence and excitement," said Flying Brands boss Trevor Brown.

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You understand that the Company receives either monetary or securities compensation for our services. We stand to benefit from any volume this write-up may generate.

You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Copyright ©, 2018. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use