Boohoo buys Dorothy Perkins, Wallis and Burton for £25m closing 214 shops and putting 2,450 jobs at risk


BOOHOO has bought Dorothy Perkins, Burton and Wallis from Sir Philip Green’s Arcadia Group in a deal that is expected to close 214 shops forever.

The takeover also puts 2,450 store jobs from all three retailers at risk of redundancy.

Dorothy Perkins, Burton and Wallis shops are expected to close forever

Boohoo will pay £25.2million for the brands – but the deal doesn’t include physical stores.

It means 214 stores in total across Dorothy Perkins, Burton and Wallis are expected to shut permanently.

Around 260 employees from the three retailers will move over to Boohoo, including buyers and designers.

As with all clothing companies, which have been deemed non-essential during the coronavirus crisis, the physical stores for these brands are currently closed due to lockdown restrictions.

It’s unclear if shops will open when lockdown is lifted to shift stock.

Websites for each brand remain open for home delivery orders.

The takeover comes after Sir Philip Green’s Arcadia Group retail empire collapsed into administration in November following “severely impacted” sales.

Dorothy Perkins, Burton and Wallis are the last remaining Arcadia Group assets to be sold off after ASOS purchased Topshop, Topman, Miss Selfridge and leisurewear brand HIIT from Sir Philip in a deal worth £330million last week.

Before that, administrator Deloitte had already sold Evans to City Chic Collective for £23million.

In an announcement last month, Arcadia Group also confirmed it would shut another 31 stores, including 21 of the group’s Outfit shops.

Topshop’s flagship Oxford Street store is reportedly being sold off too.

Arcadia Group confirmed it had collapsed into administration on November 30, putting 13,000 jobs at risk, after sales dived across the brand due to the coronavirus crisis.

Sir Philip’s stores have also been hit by competition from online retailers such as ASOS and Boohoo.

At the time of falling into administration, Arcadia Group owned 444 stores in the UK and 22 shops internationally.

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.

“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.”

Mahmud Kamani, executive chairman, said: “This is a great acquisition 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.”

More to follow…

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