Approximately 2,450 people will be told today their jobs have been axed.
2500 jobs slashed in new “Brand Only” takeover trend by BooHoo: The move comes after clothes website company Boohoo snaps up Burton, Dorothy Perkins and Wallis. The deal is said to be worth £25.2 million. However they only want the inventory, e-commerce and digital assets of the businesses. The companies had previously been owned by he Arcadia Group. Who went into administration in December. The deal will not, however, include the 214 stores nationwide. Administrators Deloitte have said they will all be closed.
All staff members have received emails this morning. And will be told during the day. Mainly head office roles, 260 jobs will be saved, including design, buying and merchandising. Also the businesses’ digital aspect. Boohoo announced last month it had purchased the website and brand of Debenhams for £55 million. This will lead to their 118 stores closing and 12,000 people losing their jobs.
Chief Executive of Boohoo, John Lyttle, said. “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 on to our proven multi-brand platform, and we are looking forward to bringing these brands on board.
Chairman Mahmud Kamani 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.” Last week Boohoo rival Asos, also an online player, signed a £330 million deal to buy Topshop, Topman, Miss Selfridge and HIIT from Arcadia. All of Arcadia’s brands have now been sold according to administrators, raising approximately £500 million to pay off creditors.
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