Online fashion retailer Boohoo has acquired all of the e-commerce and digital assets and associated intellectual property rights, including customer data, related business information and inventory of the Burton, Dorothy Perkins and Wallis brands from the joint administrators of Arcadia Group Limited for 25.2 million pounds. The deal does not include physical stores.
Commenting on the development, John Lyttle, Boohoo CEO, said in a statement: “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.”
Boohoo to strengthen market presence with new brands
Boohoo expects this acquisition to provide a significant opportunity to grow the company’s market share across a broader demographic. The acquired brands had over two million active customers in 2020. Burton brand would strengthen Boohoo’s menswear portfolio in addition to boohooMAN and the recently acquired Maine and Mantaray brands.
“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,” added Mahmud Kamani, the company’s Executive Chairman.
Boohoo said that the transaction is expected to complete on February 9, 2021, after which the relevant operations for the Dorothy Perkins, Wallis and Burton brands will continue as the group integrates them onto its platform in the first quarter of its financial year ending February 28, 2022.
In the most recent financial year to August 29, 2020, the acquired brands generated unaudited revenues of approximately 427.8 million pounds across all channels and an unaudited EBITDA loss of 14.3 million pounds. The ongoing businesses for the brands generated unaudited revenues of approximately 178.8 million pounds over the same period.
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