Online fashion retailer Boohoo has confirmed it has purchased the Debenhams brand for £55 million.
But it says it will relaunch the department store as an online-only operation from next year and the deal will not include saving Debenhams stores, which are now expected to close for good.
Executive chairman of Boohoo, Mahmud Kamani, said: ‘This is a transformational deal for the Group, which allows us to capture the fantastic opportunity as eCommerce continues to grow.
‘Our ambition is to create the UK’s largest marketplace. Our acquisition of the Debenhams brand is strategically significant as it represents a huge step which accelerates our ambition to be a leader, not just in fashion eCommerce, but in new categories including beauty, sport and homeware.’
The Debenhams website, as well as customer data, related business information and selected contracts, are included in the deal.
The company says there will be a ‘structured winding down of the business’ which will result in all stores being shut.
The department store has been around for more than 200 years but in December it announced it was facing closure as last-ditch rescue talks failed.
The brand has been in administration since last April and there were hopes it would be bought by last remaining bidder JD Sports.
But JD Sports pulled out of talks and administrators said that they would start winding down the business, clearing out the last of its stock in the first few months of 2021.
Non-essential shops, including clothing stores, have been closed since the beginning of January due to the third national lockdown in England.
It is not yet known when lockdown will be eased, allowing them to reopen.
Get in touch with our news team by emailing us at webnews@metro.co.uk.
For more stories like this, check our news page.
source https://metro.co.uk/2021/01/25/boohoo-buys-debenhams-for-55000000-and-will-relaunch-online-only-13959393/