Boohoo Buys Remaining Apparel Brands From Failed Arcadia Group
(Bloomberg) -- Boohoo Group Plc snapped up remaining brands from Philip Green’s failed Arcadia Group Ltd. after the U.K. online retailer’s rival Asos Plc acquired the flagship Topshop and other labels.
In a fresh sign of the growing dominance of online fashion retailers amid the pandemic, Boohoo agreed to buy the Dorothy Perkins, Burton and Wallis brands for just over 25 million pounds ($34 million). The company is adding the brands only, meaning 214 stores will shut, with more job losses for Britain’s troubled retail sector. Boohoo has agreed to pay another 8 million pounds for clothing stock.
The deal comes only a few weeks after Boohoo bought the Debenhams brand and e-commerce business. Boohoo shares were little changed early Monday in London.
The Arcadia brands will help Boohoo expand its market share and widen its customer base, which has been focused on teenagers and young adults, the company said in a statement. The acquisition of Burton will help strengthen its menswear offer, it said.
Arcadia was dragged down by an expensive store portfolio and its weakness online. Founder Green has also had a difficult few years after he was criticized for the sale and subsequent collapse of BHS department stores. In December, Arcadia began U.K. insolvency proceedings, leading to the piecemeal selloff of brands. So far, more than 500 million pounds has been raised for creditors.
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