Wed, 20 Feb 2013 | BUSINESS SALE
The Coast retail brand could be sold as an independent company as its parent, Aurora Fashions, is considering how to deliver the best future for the firm.
Coast has 41 standalone stores across the UK, as well as 166 concessions. It has also expanded into new markets and boasts 109 shops from Australia to the Middle East.
A sale is not imminent but Aurora's decision in 2011 to make Karen Millen an independent entity was thought to have been the start of developments to prepare the business for a sale and it appears that things could be going the same way with Coast.
Speculation regarding an MBO of Karen Millen has also emerged, although sources suggest that the buyout, which would be led by chief executive of Aurora, Mike Shearwood, is unlikely to happen until 2014 at the earliest.
Speaking to Retail Week, Derek Lovelock, Aurora chairman, said he was aiming to make the two brands self-sufficient: "It's worked well with Karen Millen. We like the model of self-sufficiency and accountability for each of the brands. They all have different needs and ultimately it will facilitate a sale."
It is thought that Oasis and Warehouse will eventually follow a similar path towards independence.
Among the targets for the self-sufficient brands is the development of Coast's new store format, which was launched on Oxford Street in conjunction with furniture and restaurant designer Lee Broom. The Trinity Leeds store will benefit from a similar format when its store opens later this month, while other key locations are also likely to be redesigned in a similar manner.
Aurora is a business formed out of the administration of Mosaic Fashion in 2009. It is majority owned by Icelandic bank, Kaupthing. The company saw profits drop by 15.3 per cent to £12.7 million in the year to February 2012 due to an underperformance of the womenswear brand, Bastyan.
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