Boohoo buys brand, Debenhams website, but not its stores

Fashion retailer Boohoo has reportedly bought the UK-based Debenhams brand and website for £ 55million, but it will not accept any of the chain’s remaining 118 High Street stores or its workforce. The deal would result in the loss of nearly 12,000 jobs at the department store chain, which is already shutting down, after directors failed to secure a bailout deal for the company.

FRP Advisory, Trustees of Debenhams UK, said it had undertaken a “thorough and robust process” to achieve “the best outcome for Debenhams stakeholders”. Boohoo said it was a “transformative deal” and a “giant leap” and that Debenhams is expected to relaunch on its web platform in early 2022.

Until then, Debenhams will continue to operate its website for an agreed period.

Boohoo has already purchased a number of High Street brands including Oasis, Coast and Karen Millen, outside of administration, but not their associated stores.

“This transaction will allow a new Debenhams branded business to emerge under strong new ownership, including an online operation and the ability to secure an international franchise network that will operate under license using the Debenhams name,” FRP said. Advisory, quoted by British media reports.

A closing sale at 124 Debenhams stores began in December, with administrators continuing to seek deals for all or part of the business. The 242-year-old company recently announced that six stores will not reopen after the lockdown, including its flagship department store on London’s Oxford Street.

Boohoo said his plans included “transforming Debenhams by developing an exciting online marketplace, capitalizing on the structural shift from industry to online.” He wants to expand Debenhams’ product categories and its partnerships with suppliers. It was funding the deal from its existing cash reserves, he added.

Fibre2Fashion Information Office (DS)

Boohoo has reportedly bought the Debenhams brand and website for £ 55million, but it will not accept any of the chain’s remaining 118 High Street stores or its workforce. The deal would result in the loss of 12,000 jobs at the department store chain, which is on the verge of closing, after directors failed to secure a bailout deal for the company.

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