Karen Millen CEO leaves ‘after Boohoo takeover deal’
Written by Hannah McGrath
Karen Millen chief executive Beth Butterwick is reported to have stepped down from the role, following the takeover of the company by online fashion retailer Boohoo.
Butterwick, who has led the womenswear brand since 2016, has left the business after Boohoo acquired Karen Millen and Coast in an £18.2 million pre-pack administration deal, according to Drapers.
It has also been reported that staff at Karen Millen and Coast, the formalwear brand acquired by Karen Millen in December last year, are facing potential redundancies, with all pattern-cutting roles placed into consultancy.
A total of 62 jobs were cut immediately after the Boohoo takeover. Karen Millen and Coast employ around 1,100 people across their head office, 32 stores and 177 concession networks across the UK.
Boohoo’s takeover involved the pre-pack administration process of Karen Millen and Coast’s intellectual property rights and online operations, with no physical stores included in the deal. 125 members of staff who work in the online businesses will be retained.
The 32 stores and 177 concessions will trade for a short time as part of an administration process.
Announcing the Boohoo acquisition earlier this month, professional services firm Deloitte, which is leading the administration process, said: “Like many high street retailers, Karen Millen has suffered from high product and other cost inflation, decreasing footfall, weaker consumer confidence and a complex global operation in an increasingly competitive market.”
Boohoo did not immediately respond to a request for comment.