Premium womenswear fashion retailer Karen Millen is all set to bid adieu to its Iceland-based parent company as reports gather over a possibility of auction.
The potential sale arises as the company’s operating losses slumped by 85 per cent to £1.4 million in the financial year 2017-18.
The reports of Sky News stated that Kaupthing, the Icelandic Bank, has appointed Deloitte to direct the auction after “several weeks of deliberations by the board.” It further claimed that it is ambiguous “whether the emphasis would be on a solvent sale” with the retailer and its advisers not commenting.
The potential sale is expected to be concluded over a period of several months.
Karen Millen has an eminent position in the UK fashion market and also has a major threshold abroad, in around 50 markets in Europe, North America and Australasia. It has around 58 directly operated (own) stores, 164 franchised locations and large number of department concession stores including John Lewis and Selfridges, and has staff strength of 1,700 globally.
The company made a turnover of £162 million in the financial year 2017-18, up from £158.8 million a year earlier. But the brand was suffering loss, although its loss for the year fell to £1.4 million.
The company had brought the Coast brand out of its administration last year and had shut most of its stores.
Kaupthing was one of the banks that crashed during the global financial crisis a decade ago and its assets also include Oasis and Warehouse owner Aurora Fashions, which does not form a part of the sale.
