Karen Millen to buy parts of retailer Coast out of administration

The British fashion retailer Karen Millen has agreed to buy parts of Coast womenswear out of administration for an undisclosed sum.

Karen Millen said that Coast would trade primarily across its various websites, in concessions across the UK and through wholesale and franchise partners. Coast’s 24 standalone stores and the concessions on mainland Europe are not included.

The announcement came immediately after PwC were appointed administrators at Coast. Both Coast and Karen Millen are owned by the failed Icelandic bank Kaupthing.

Mike Denny, joint administrator and PwC director, said Coast 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”. It had also been affected by the problems at House of Fraser department store group, where it was a concessionaire.

“This sale puts the ongoing business on a firmer financial footing,” said Mr Denny.

In a statement, Karen Millen said it was “confident that it can leverage its product expertise and existing global relationships to drive growth potential across Coast’s sales channels”, adding that Coast gift cards and returns would be honoured “in full”.

Beth Butterwick, chief executive, described Coast as “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.”