DONE DEAL: Boohoo Buys Dorothy Perkins and Two More Arcadia Brands
IN a £25 million (€28.5 million) deal that will see 214 stores permanently close and 2,450 jobs axed immediately, fashion giants Boohoo have acquired three brands from Sir Philip Green’s Arcadia, which entered administration in December.
Earlier last month, Boohoo boss Mahmud Kamani, who pocketed £100million last year, bought the Debenhams brand in a £55m deal that also excluded its high street sites, leading to the likely loss of up to 12,000 jobs.
A week after rival Asos saved flagship brand Topshop from collapse, Boohoo will now take over Dorothy Perkins, Wallis and Burton – stating that it would buy all the e-commerce and digital assets of the three brands, as well as their inventory.
Boohoo John Lyttle, CEO, commented: “We are delighted to announce the acquisition of the assets associated with the online businesses of the three established brands Burton, Dorothy Perkins and Wallis. Acquiring these well-known brands in British fashion out of administration ensures their heritage is sustained, while our investment aims to transform them into brands that are fit for the current market environment.
“We have a successful track record of integrating British heritage fashion brands onto our proven multi-brand platform, and we are looking forward to bringing these brands on board.”
Mahmud Kamani, Executive Chairman, added: “This is a great acquisition for the Group as we extend our market share across a broader demographic, capitalising on growth opportunities as more and more customers shop online. We continue to grow our portfolio of brands and customer base, strengthening our position as a leader in global fashion e-commerce.”
Approximately 260 jobs will be moving with the brands to Boohoo, mainly head office functions such as brand design, buying and merchandising, and the digital part of the business.
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