Securing the Future of an Award-Winning
Children’s Fashion Brand

Sale Background

The Joint Administrators, Tom Gardiner and Lee De’ath of Begbies Traynor (Central) LLP were appointed in March 2025, and Hilco was instructed to oversee the marketing of the business and assets of Kildy Limited (In Administration).

Kidly Limited was an award-winning, design-led e-commerce business focused on the 0–5 children’s retail market. Founded in 2016 a former ASOS executive, Kidly aimed to fill a gap in the market for curated, stylish, and sustainable essentials under one brand, launching initially as a online platform built on Shopify and later developing its own-label product line under the “Kidly Label” brand. By blending own-label design with a strong digital customer experience, the business grew rapidly and developed a loyal customer base. By the time the Company entered administration, it had amassed over 200,000 customers and excellent customer reviews, cultivated a significant social media following, and operated a sophisticated Shopify storefront.

However, despite Kidly’s strong brand identity and growing performance (with revenue reaching approximately £14 million in FY23), the business remained fundamentally loss-making and was ultimately unable to raise further funds in late 2023. A proposed strategic sale to an investor consortium fell away in Q1 2024, and by March 2024, the directors resolved to place Kidly into Administration.

The Joint Administrators, Tom Gardiner and Lee De’ath of Begbies Traynor (Central) LLP were appointed in March 2025, and Hilco was instructed to oversee the marketing of the business and assets.

Hilco’s Involvement

Leveraging our track record in retail, consumer brands, and e-commerce, we developed a commercially led strategy focused on maximising value for the benefit of Kidly’s creditors.

We worked closely with and supported the Joint Administrators to identify and articulate value in the Kidly business and assets, including providing GDPR analysis and appropriate data handling protocols in respect of the customer database, given the business’s insolvency context. We also leveraged our experience with Shopify to advise on the impact of Kidly’s Shopify Capital loan on any sale of business and assets, and helping shape offer structures that accounted for this liability.

As the sale process unfolded, we played a central role in keeping multiple parties engaged and maintaining competitive tension. Despite challenging timing and an unsuccessful pre-pack attempt, our team was able to stabilise the process and drive it through to completion.

Sale Outcome

The successful acquirer was Baby Mori Limited, an established player in the premium babywear market with a complementary customer base and product ethos. The transaction, completed in April 2025, comprised the sale of the Kidly Label brand, goodwill, Shopify website, customer database, domain name, fixtures and fittings, and selected stock.

The sale allowed for the continuation of the Kidly brand, preserved its customer goodwill, and delivered value to Kidly’s creditors. Distributions to the secured creditor were made, and there was a prescribed part return available for unsecured creditors.

“Ultimately, the case illustrates how an experienced IP and brand sales team can protect and realise value in distressed processes, particularly when the value lies in customer trust, brand equity, and digital infrastructure, rather than hard assets.” – Yasmin Saadi, Senior Analyst, Hilco