More store closures as Boohoo buys Burton, Wallis and Dorothy Perkins
- Credit: Charlotte Bond
Several Suffolk stores will stay closed permanently after three more brands formerly owned by Phillip Green's retail empire were snapped up by an internet giant.
Boohoo, an online fashion retailer, has bought Dorothy Perkins, Burton and Wallis in a deal which is worth £25.2million.
The deal includes the brands, intellectual property and inventory, but does not include the network of 214 stores.
This network includes stores in Felixstowe, Colchester and Haverhill. Around 2,500 of the retail chain's will lose their jobs as a result of the buyout.
But approximately 260 jobs, mainly head office roles, will be saved as they move with the brands to Boohoo. These include jobs in design, buying and merchandising, and the businesses’ digital wings.
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Last month Boohoo said it had bought the brand and website of department store chain Debenhams for £55 million. But it did not take on the company’s 118 stores, meaning around 12,000 jobs were likely to be lost and signalling the closure of stores in Colchester, Bury St Edmunds and Ipswich.
Boohoo chief executive 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.
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“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.”
This is last of Arcadia's brands to be sold after the group went into administration in December.
Last week Boohoo rival Asos, also an online player, signed a £330 million deal to buy Topshop, Topman, Miss Selfridge and HIIT from Arcadia.
Similarly, the deal did not include any high street stores and meant the permanent closure of the Bury St Edmunds and Ipswich Topshop stores.
Administrators have now sold all of Arcadia’s brands, raising around £500 million to pay off creditors. There is still some property in the portfolio left to sell.