On Friday 29th January, it appeared that Manchester-based fast fashion company had reportedly entered exclusive talks to buy the final three Arcadia brands. Boohoo is reportedly in talks to buy Dorothy Perkins, Wallis and Burton from Arcadia’s administrators as the breakup of Sir Philip Green’s collapsed business will result in 13,000 redundancies.
Only last week Boohoo had reported its acquisition of Debenhams for £55 million in a deal that will mean the chain’s remaining 118 high street stores will close with the expected loss of 12,000 jobs. In the meantime, online giant Asos also confirmed that it was closing in on a deal to buy Arcadia’s biggest brands, including Topshop for which Issa brothers had also reportedly made their surprise bids.
Neither Booohoo nor Asos, which are primarily online services, are expected to take on any of Arcadia’s 444 outlets that employ majority of their 13,000 employees. Some head office jobs could be saved if the new owners opt to retain staff employed in key areas such as buying and design.
In a public statement, the company said, “Boohoo Group confirms that it is in exclusive discussions with the administrators of Arcadia over the acquisition of the Dorothy Perkins, Wallis and Burton brands. These discussions may or may not result in agreement of a transaction. A further announcement will be made when appropriate.
“Boohoo is rifling through the bargain bins once more,” said Susannah Streeter, a senior investment and markets analyst at investment platform Hargreaves Lansdown. “Asos had turned its nose up at the trio of brands but Boohoo clearly believes there is still demand to be squeezed out of them. As an online-only fashion giant, Boohoo would only be interested in the brands, so the rescue of the famous names won’t throw a lifeline to the thousands of shopworkers who are very likely to still face redundancy.”
Boohoo has reportedly offered about £25m for the trio of Arcadia brands. The deal is expected to be similar to the Debenhams one, with all Dorothy Perkins, Wallis and Burton outlets expected to close and few employees set to transfer over.
