In a deal worth 55 million pounds, online retailer Boohoo has acquired the recently failed Debenhams business.
During the Covid-19 pandemic and lockdown restrictions within the UK during 2020, the company experienced a huge impact on its already struggling business.
Debenhams has been 1 of the UK’s central shopping department stores and will be sorely missed by the public. The company has been in operation for 242 years making it one of the oldest stores in the UK. The sad demise and closure of the business will mean 118 of the remaining stores will close.
Debenhams will be running closing down sales across the companys remaining 118 stores providing lockdown restrictions don’t prevent this.
The loss to the High Street is not the only loss that has suffered as a result of Debenhams closure. Many of the 12,000 will almost certainly be losing their jobs due to the closure of the stores.
The 55 million pound deal is a tiny sum of money for such a huge High Street and shopping network. The reason why it is so low is because the acquisition does not include the shops themselves but only includes the Debenhams brand, website and any own branded products within the fashion and beauty categories.
Geoff Rowley, joint administrator and partner of FRP Advisory said “We are pleased to have secured the future for this great brand, and to have created the opportunity for a new Debenhams-branded business to emerge in a different shape beyond the pandemic,”
He went on to say “I expect that the agreement with Boohoo may provide some job opportunities but we regret that this outcome does not safeguard the jobs of Debenhams’ employees beyond the winding down period.
“We are very grateful that they have worked tirelessly through this very challenging period and will continue to support the closing down sale.
“I’d also like to thank the management team, who have worked very hard throughout to protect the business and support us in delivering the best outcome for stakeholders.”
BooHoo has in the past, purchased a few other High Street brands as they also went into administration. In the same Debenhams, those stores also became online only operations. The other stores that were acquired by BooHoo include Coast, Karen Millen, Oasis and warehouse.