Boohoo is closing in on a deal for three of Arcadia’s high street brands as the fashion etailer presses ahead with its ambitious acquisition spree.
The online giant said this morning that it has entered into exclusive talks with Arcadia’s administrators Deloitte over the purchases of Burton, Dorothy Perkins and Wallis.
Boohoo cautioned, however, that the discussions “may or may not result in agreement of a transaction”. It is understood to have told Deloitte it will not pay more than £25m to add the brands to its fast-growing fashion group.
If Boohoo does complete the swoop, first reported by Sky News, the retailers are likely to disappear from the high street and be integrated into the etailer’s online stable.
Boohoo completed a similar £55m deal to buy Debenhams’ brand and website earlier this week, a move that Boohoo’s founder and chair Mahmud Kamani hailed as “transformational”.
Boohoo and its online rival Asos have emerged as power players in the fashion sector – a position both have sought to take advantage of during the coronavirus crisis by swooping on struggling rivals.
Asos is in pole position to acquire Arcadia’s flagship brand Topshop and Miss Selfridge, a swoop that would complete the break-up of Sir Philip Green’s high street empire.
Arcadia employed around 13,000 people before it collapsed in November, but the majority of those workers will now be made redundant as Boohoo and Asos take the brands online.
Administrators Deloitte have already completed the sale of womenswear brand Evans to Australia’s City Chic as they seek to recover around £400m from asset sales.
Topshop’s flagship store on Oxford Circus is the subject of a separate sale process but, as revealed by Retail Week, Asos harbours ambitions to retain the site should it complete its purchase of the brand.
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