Online fashion retailer Boohoo has acquired the Debenhams brand and website for £55 million, reports have revealed.
But the deal does not include the department store’s bricks and mortar premises, which are now set to close and result in the redundancy of up to 12,000 staff.
The 242-year-old high street retailer fell into administration last year after failing to secure a rescue deal for its business, which includes 124 shops across the country.
The store – which has been trying to find a buyer since the summer – attributed its demise to shopping moving online, but its situation worsened following the start of the coronavirus pandemic.
“The group will only be acquiring the brands and associated intellectual property rights,” Boohoo confirmed this week. “The transaction does not include Debenhams’ retail stores, stock or any financial services.”
The takeover will add to its existing online portfolio, which also includes high street brands Oasis, Coast and Karen Millen.
Commenting on the deal, Mahmud Kamani, executive chairman at Boohoo, said: “This is a transformational deal for the group, which allows us to capture the fantastic opportunity as e-commerce continues to grow. Our ambition is to create the UK’s largest marketplace.
“Our acquisition of the Debenhams brand is strategically significant as it represents a huge step which accelerates our ambition to be a leader, not just in fashion e-commerce, but in new categories including beauty, sport and homeware.”
Joint administrator Geoff Rowley added: “We are pleased to have secured the future for this great brand, and to have created the opportunity for a new Debenhams-branded business to emerge in a different shape beyond the pandemic.”
In related news, online retail giant ASOS is reportedly set to take over the Topshop, Topman, Miss Selfridge and HIIT brands from the Philip Green-owned Arcadia Group. The deal is also unlikely to include physical shops, putting 13,000 more jobs at risk.
For help and advice with related matters, please get in touch with our expert team today.