In a significant move for the fashion industry, Manchester-based retailer Boohoo has acquired three iconic British heritage brands: Dorothy Perkins, Wallis, and Burton. The deal, which is valued at £25.2 million, comes after the well-known Arcadia Group, which previously owned these brands, entered administration last year.

Under the terms of the acquisition, Boohoo will take ownership of the e-commerce and digital assets, customer data, and inventory of these brands. However, it does not include the physical stores, which means that 214 stores will be closed, resulting in the unfortunate loss of approximately 2,500 jobs.

One of the key concerns following this acquisition is whether Boohoo will retain any of the staff from Dorothy Perkins, Wallis, and Burton. The brands’ staff members are primarily based in London, and since Boohoo is headquartered in Manchester, there is uncertainty surrounding this aspect. ASOS, another buyer of Arcadia brands, has previously announced that it would retain around 300 staff members, but it is also based in London.

The integration of these heritage brands onto Boohoo’s platform is expected to happen during the first quarter of the new financial year. Boohoo sees this acquisition as a significant opportunity to expand its market share and reach a broader demographic. Despite recent difficulties faced by these brands, they still boast a substantial customer base, with over two million active customers in 2020. This purchase will further strengthen Boohoo’s position as a leading player in the global fashion e-commerce market and enhance its menswear portfolio.

Moreover, the addition of Dorothy Perkins, Wallis, and Burton will also provide support for Boohoo’s recently launched Debenhams marketplace. The brands generated unaudited revenues of approximately £427.8 million across all channels in the last financial year, with an unaudited EBITDA loss of £14.3 million. Without the physical stores, the ongoing businesses generated unaudited revenues of around £178.8 million over the same period.

Boohoo’s CEO, John Lyttle, has emphasized his commitment to preserving the heritage of these British fashion brands while adapting them to fit the current market environment. Boohoo has successfully integrated other British heritage brands onto its multi-brand platform in the past, and it is confident in its ability to do the same with Dorothy Perkins, Wallis, and Burton.

[Link 1: Read more about Boohoo’s latest acquisition here.](insert link: https://www.boohoo.com/)
[Link 2: Learn about Boohoo’s previous successful integration of British heritage brands onto its platform.](insert link: https://www.boohoo.com/heritage-brands)