All of Dorothy Perkins, Wallis and Burton’s stores are set to permanently close with a loss of around 2,500 jobs after online clothing giant Boohoo agreed a £25.2 million buy out deal.
It means all of controversial business tycoon Sir Philip Green’s Arcadia group’s brands have now been taken out of administration.
Staff have been emailed this morning and will be informed over the course of the day about their jobs being axed, with the three brands set to move online.
Boohoo’s buyout did not include the brands’ 214 retail stores, concessions or franchises. It comes after Asos bought other Arcadia brands, including Topshop and Topman, out of administration a week ago at the loss of another 2,500 jobs.
Arcadia had collapsed late last year, putting thousands of jobs at risk.
Boohoo said that it would buy all the e-commerce and digital assets of Dorothy Perkins, Wallis and Burton, as well as their inventory.
In a separate statement, administrators from Deloitte confirmed that around 2,450 staff will lose their jobs at the brands’ remaining outlets.
Approximately 260 jobs will be moving with the brands to Boohoo – mainly head office functions such as brand design, buying and merchandising, and the digital part of the business. Some other staff will also go through a transition period for a few months.
Administrators still have some property to sell from the business and have raised some £500 million to pay off creditors so far.
Boohoo chief executive John Lyttle said: ‘We are delighted to announce the acquisition of the assets associated with the online businesses of the three established brands Burton, Dorothy Perkins and Wallis.
‘Acquiring these well-known brands in British fashion out of administration ensures their heritage is sustained, while our investment aims to transform them into brands that are fit for the current market environment.
‘We have a successful track record of integrating British heritage fashion brands onto our proven multi-brand platform, and we are looking forward to bringing these brands on board.’
The company’s chairman Mahmud Kamani added: ‘This is a great acquisition for the group as we extend our market share across a broader demographic, capitalising on growth opportunities as more and more customers shop online.
‘We continue to grow our portfolio of brands and customer base, strengthening our position as a leader in global fashion e-commerce.’
Miss Selfridge and HIIT were also bought from Arcadia in last week’s £330 million deal with Asos.
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MORE : All Topshop stores to close and 2,500 jobs lost as Asos buys four Arcadia brands
source https://metro.co.uk/2021/02/08/boohoo-to-take-over-dorothy-perkins-in-25000000-deal-with-arcadia-14039689/