Dorothy Perkins, Wallis & Burton 214 stores to close with 2,450 jobs lost according to Boohoo

Fast fashion giant Boohoo has acquired Dorothy Perkins and two more Arcadia brands for £ 25 million, in a deal that will see 214 stores closed permanently and 2,450 jobs immediately cut.

The online retail business will take over for Burton, Dorothy Perkins and Wallis, a week after rival Asos saved flagship brand Topshop from collapse.

The company, which has bailed out Debenhams, Oasis and Warehouse since the start of the pandemic, said it would buy all of the three brands’ e-commerce and digital assets, as well as their inventory.

However, the deal does not include the brand’s retail stores, concessions or franchises, with 214 stores not reopening after closure measures are eased.

Arcadia administrators Deloitte confirmed that around 2,450 employees will lose their jobs with immediate effect.

Approximately 260 jobs will move with the brands to Boohoo, primarily head office functions such as branding, purchasing and merchandising, and the digital side of the business.

Some other staff members will also go through a transition period for a few months.

The staff received an email this morning and will be informed throughout the day.

Are you an Aracdia employee affected by this news? Contact [email protected]

Boohoo has also raised £ 500 million to pay off creditors so far.

John Lyttle, CEO of Boohoo, 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.

“The acquisition of these well-known British fashion brands out of the administration ensures that their heritage is preserved, while our investment aims to transform them into brands that are adapted to the current market environment.

“We have a successful track record of integrating British heritage fashion brands into our proven multi-brand platform, and we look forward to incorporating these brands.”

Founded in Manchester in 2006, Boohoo typically specializes in fast fashion for twentysomethings.

In early 2017, the group acquired the fashion brands PrettyLittleThing and Nasty Gal.

In 2019 it rescued MissPap, the Karen Millen and Coast brands and the Warehouse and Oasis brands.

As of August 31, 2020, the fashion group had just over 17 million active customers across all of its brands around the world.

Mahmud Kamani, Chief Executive Officer, added: “This is a great acquisition for the Group as we expand our market share across a broader demographic, capitalizing on growth opportunities as more and more customers shop online.

“We continue to expand our portfolio of brands and our customer base, strengthening our position as a leader in global fashion e-commerce.”

The acquisition comes just a week after online giant ASOS rescued Sir Philip Green’s flagship Topshop brand for £ 295 million.

The online giant acquired Topshop, Topman, Miss Selfridge and HIIT at auction, two months after Arcadia collapsed with a deficit of £ 750 million.

However, all stores will close and only 300 jobs will be saved.

In total, ASOS, which is owned by Scotland’s richest man Anders Holch Povlsen, worth £ 6.1 billion, will pay £ 265 million for the brands, plus an additional £ 30 million for all shares.

It will pay an additional £ 30 million to account for outstanding liabilities and creditors’ orders.

Approximately 300 employees from the design, purchasing and retail associations will transfer to ASOS; at least 2,500 retail jobs will be lost as a result of the acquisition.

The transaction was completed on February 4, with the brands’ websites redirected to ASOS.

ASOS said it is “looking” to salvage Topshop’s flagship store on Oxford Street, which would be its first and probably only main street store.

Despite the collapse, Sir Philip’s family is expected to receive £ 50 million from the deal.

It follows the sale of Evans to City Chic on December 23, 2020 for £ 23 million.

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Last month, Arcadia managers agreed to sell the retailer’s plus-size brand Evans to Australian firm City Chic Collective for £ 23 million.

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Here are some other high-profile retail names affected by the virus outbreak.

• Aldo It went into administration in May, prompting the closure of five UK stores. The business is still looking for a buyer, although franchised stores that are not part of the process and the concessions are still listed.

• Benson Beds It went into management in June with Harveys Furniture and its owners quickly bought it back in a pre-arranged deal.

• Bright house entered administration at the end of March.

• Cath Kidston It went into administration in April and its online guns, franchises and wholesalers were bought back by their owners, leading to 60 store closures and 908 layoffs.

• Debenhams It is scheduled to close the remaining 118 stores after Boohoo confirmed an acquisition of its website-only business.

• Harveys Furniture It entered administration in June and continues to negotiate and fulfill existing orders, while planning to close 20 stores and lay off 240 employees.

• Laura ashley It said in March it would permanently close 70 stores and cut hundreds of jobs after appointing managers.

• LK Bennet brought in managers last year and is proposing to close stores and cut rents to save the business.

• Oasis and Warehouse fell into administration in mid-April after finding no buyers, and online fashion group Boohoo said in June it was buying the brands but closing all stores.

• Edinburgh Wool Mill, Peacocks and Jaeger the owners took over management in November, putting 4,716 jobs at risk.

• Monsoon Accessorize It went into administration in June and was later bought by its founder. The deal meant the permanent closure of 35 stores and the layoff of 545 employees, but it also saved 155 stores and more than 2,500 jobs in the UK and Ireland.