The joint administrators of Arcadia Group Ltd, Deloitte, have negotiated the deal with boohoo to acquire the three brands, including the associated intellectual property rights, including customer data, related business information and inventory. The brands had over two million active customers in 2020.
Boohoo will pay £25.2m in cash, funded from existing cash resources, on completion.
The deal will exclude the brands’ 214 shops which means that up to 2.500 jobs are at risk.
The group said this was a significant opportunity to grow boohoo’s market share across a broader demographic.
The acquisition will strengthens boohoo’s position as a leader in the global fashion e-commerce market with over 15 brands across the group’s scalable multi-brand platform. It will strengthen boohoo’s menswear proposition as Burton is an established brand which will enhance boohoo’s menswear portfolio in addition to boohooMAN and the recently acquired Maine and Mantaray brands.
It will also bring on board additional own label brands to support the Group’s new Debenhams marketplace, providing two routes to market across pureplay websites and the Group’s marketplace.
John Lyttle, CEO, 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 onto our proven multi-brand platform, and we are looking forward to bringing these brands on board.’
Mahmud Kamani, executive chairman, said: ‘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.’
The deal will only cover brands and will not include high street stores, adding to city centre shop closures.
Boohoo was founded in Manchester in 2006 by Mahmud Kamani and Carol Kane. The group today is home to a portfolio of innovative fashion brands targeting style and quality conscious consumers with up-to-date and inspirational fashion. What started as one brand, growing extensively in the UK and internationally, is today a platform of multiple brands servicing customers globally, generating sales in excess of £1bn.
The acquisition follows the sale by administrators Deloitte of the Topshop, Topman, Miss Selfridge and HIIT brands to online specialist ASOS, in a deal which will generate £330m but left thousands of jobs at risk as high street stores are all set to close.
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