Photographer: Chris Ratcliffe / Bloomberg
Photographer: Chris Ratcliffe / Bloomberg
Online fashion retailers Boohoo Group Plc and Asos Plc is trying to save UK retail brands such as Debenhams and Topshop.
Boohoo said Monday it is buying the Debenhams brand for 55 million pounds ($ 75 million). Separately, Asos Plc said it is in specific talks with Philip Green’s management Arcadia Group Ltd to purchase UK retailer Topshop brand and other leaflets.
Boohoo said Monday it will acquire its Debenhams brands and fashion sub-brands, including Manta Ray and Principles. The small purchase price indicates that Boohoo is not buying any stock from the retailer or holding its 124 stores that will open, when the current UK closure comes, again long enough to sell leftovers before closing again. Their permanent closure threatening thousands of jobs.
Boohoo’s last-minute move reflects the fast-growing online retailer’s desire to expand its online offerings beyond its primary customer base of twenty-one teenage women something. Debenhams also has a large online beauty business.
Debenhams is one of Britain’s most famous retail brands, which traces its history back more than 240 years but has been struggling recently, reduced by strong rents and huge property taxes. the stores. The retailer is also facing the challenge of stiff competition from e-commerce in the UK as shoppers increasingly shift from shopping to online shopping. The movement has accelerated through the pandemic.
The deal also comes after Mike Ashley’s Frasers Group Plc failed to contract to buy the Debenhams brand, its website and some of the 124 stores in the chain. Earlier talks with JD Sports Fashion Plc to buy Debenhams for £ 300 million also collapsed after a failure Arcadia Group, which owns Topshop and Dorothy Perkins logos with a prime presence in Debenham stores.
Debenhams entered administration, a type of bankruptcy in the UK, in December and is currently melting it down.
Asos confirmed the talks for the Arcadia brands after Sky News reported that the start-up was the purchase of Topshop from the bankruptcy company, which collapsed as coronavirus-related locks added to the grief . A price of more than 250 million pounds ($ 343 million) is being discussed, according to the report.
The talks will also include the Topman, Miss Selfridge and HIIT logos, according to recitation. No trade would involve the stores of the Arcadia units, Sky said.
Fashion retailer It was previously reported that Next Plc and a range of other customers were interested in Topshop.
Any contract would be funded in cash, Asos said. There is no certainty about a deal, he said.