Boohoo Buys Dorothy Perkins, Wallis and Burton for £25 Million
Boohoo’s purchase, which will put 2,500 retail jobs at risk, completes the dissolution of Sir Philip Green’s Arcadia Group.
Online fashion retailer Boohoo has bought out Dorothy Perkins, Burton and Wallis from Sir Philip Green’s failed retail group Arcadia for £25.2 million.
The deal comes only weeks after Boohoo moved to buy Debenhams, a prominent UK high street retailer also owned by Arcadia Group, for £55 million.
Like the Debenhams purchase, Boohoo will acquire the brands and online businesses of Dorothy Perkins, Wallis and Burton, but not the 214 physical stores that come with them. Administrators Deloitte, which has been overseeing the sales, stated that around 2,450 jobs will be lost as these shops wind down their business.
260 head office roles relating to the brands’ design, buying, merchandising and digital operations will be transferred to Boohoo.
John Lyttle, CEO of Boohoo, touted the deal as the newest entry in a “successful track record” of integrating high-profile British brands into Boohoo’s online storefront.
“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,” he said.
Asos, an online retail rival to Boohoo, also bought out a number of Arcadia’s largest brands last week. Topshop, Topman and Miss Selfridge were purchased for £330 million in another brands-only deal that did not include stores or warehouses, putting a further 2,500 jobs at risk.
Commenting on the news of Boohoo’s latest purchases, Sendcloud CEO Rob van den Heuvel cautioned against viewing the move as demonstrating that physical retail no longer has value. “Consumers are craving the face-to-face retail experience now more than ever, with 44% of consumers planning to start shopping at retail stores as soon as businesses reopen,” he noted.
“While shifting to eCommerce may be one of the only ways businesses survive in the short-term – now is not the time to tear down brick and mortar stores.”