Uniqlo owner targets Cath Kidston

It is thought that should a sale of the company be agreed, both Ms Kidston and management would retain shareholdings in the business.

Cath Kidston has 61 stores in the UK and 75 overseas, having opened its first shop outside the UK in Tokyo in 2006. The retailer now has 33 stores in Japan and Ms Kidston remains creative director of the business which, for the year ending March 31, 2013, recorded a 19pc rise in annual sales to £105m. Earnings before interest, taxes, depreciation and amortisation rose 13pc to £21m.

Fast Retailing, which is listed in Tokyo and is Asia’s largest fashion retailer, is best known in the UK for its Uniqlo casual clothing chain.

The Yamaguchi-based group opened a new flagship store in Berlin on Friday, the same day that it disappointed investors by cutting its forecasts for full-year profits. The company, which also owns the Theory and Comptoir des Cotonniers brands, is stepping up overseas expansion to compensate for slowing growth in Japan.

The retailing giant has more than 1,300 stores worldwide, including 856 shops in Japan. A spokesman for Cath Kidston declined to comment.

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