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Boohoo acquires e-com, digital assets of 3 British brands

08 Feb '21

2 min read

Pic: Barry Barnes / Shutterstock.com

Online fashion retailer Boohoo recently announced it will acquire all e-commerce and digital assets and associated intellectual property rights, including customer data, business information and inventory of the Burton, Dorothy Perkins and Wallis brands from the joint administrators of Arcadia Group Ltd and its subsidiaries by paying £25.2 million in cash.

The cash will be funded from existing cash resources on completion, Boohoo said in a statement.

The strategic rationale behind the move is to grow Boohoo's market share across a broader demographic and the acquired brands had over two million active customers in 2020.

Burton will enhance Boohoo's menswear portfolio in addition to boohooMAN and the recently-acquired Maine and Mantaray brands.

The transaction is expected to complete on February 9, after which the relevant operations for the three brands will continue as the group integrates them onto its platform in the first quarter of its financial year ending 28 February 2022.

The Boohoo Group's existing cash resources stood at £386.9 million on December 31, 2020, prior to the acquisition of Debenhams for £55 million announced on January 25 this year.

The transaction does not include the HIIT brand and the three brands' retail stores, concessions or franchises.

Fibre2Fashion News Desk (DS)

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