Amid the mass purchase of brands from the Arcadia Group, Boohoo has announced their purchase of Dorothy Perkins, Burton and Wallis.
The latest purchase of £25.2 million for the three brands comes after Boohoo announced their purchase of Debenhams, another brand of the Arcadia Group, earlier this year. Their rivals, ASOS, acquired four brands from the Arcadia Group whilst Evans was bought by Australian brand, City Chic, for £23 million, back in December.
Boohoo’s Chief Executive, John Lyttle said about the deal:
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.
Just like the other purchases, this deal is for the brands and their websites only meaning that all of the Dorothy Perkins, Burton, and Wallis stores will close. This will result in around 2,450 job losses. 260 jobs will transfer with the brands to Boohoo, but these will be in brand design, merchandise purchasing, and those working on their online presence. Administrators Deloitte said all staff had been informed via email on Monday 8th February.
This means all the brands once belonging to Sir Philip Green’s Arcadia Group have now all been sold, a move triggered by the company going into administration in November 2020. The purchase of these British brands by online retailers gives them a chance for revival on successful online platforms but means the recovery of the Great British high street is looking less likely.