{"id":105795,"date":"2021-01-29T09:10:42","date_gmt":"2021-01-29T09:10:42","guid":{"rendered":"https:\/\/fin2me.com\/?p=105795"},"modified":"2021-01-29T09:10:42","modified_gmt":"2021-01-29T09:10:42","slug":"boohoo-confirms-exclusive-talks-to-buy-three-arcadia-brands","status":"publish","type":"post","link":"https:\/\/fin2me.com\/business\/boohoo-confirms-exclusive-talks-to-buy-three-arcadia-brands\/","title":{"rendered":"Boohoo confirms ‘exclusive’ talks to buy three Arcadia brands"},"content":{"rendered":"
Boohoo, the online retailer which snapped up the Debenhams brand this week, has confirmed “exclusive” talks to buy remnants of Sir Philip Green’s Arcadia empire.<\/p>\n
Sky News revealed on Thursday night that Boohoo was leading the race<\/strong> for the Dorothy Perkins, Wallis and Burton brands and was prepared to pay around £25m.<\/p>\n Any deal would complete the downfall of Sir Philip<\/strong>‘s sprawling retail interests and result in the closure of all 444 stores.<\/p>\n That is because Boohoo – like fierce rival ASOS, which is locked in negotiations over the most valuable parts of Arcadia including Topshop – also has no plans to take on any physical sites amid COVID-19<\/strong> chaos on the high street.<\/p>\n It places 13,000 Arcadia jobs in peril on top of more than 10,000 at Debenhams<\/strong>, <\/strong>which is also set to see stores shuttered once stock clearances are completed ahead of a pure digital future.<\/p>\n Boohoo said on Friday: “The group confirms that it is in exclusive discussions with the administrators of Arcadia over the acquisition of the Dorothy Perkins, Wallis and Burton (excluding HIIT) brands.<\/p>\n “These discussions may or may not result in agreement of a transaction. A further announcement will be made when appropriate.”<\/p>\n Boohoo shares were 1% down at the open.<\/p>\n Analysts at Jefferies Equity Research said of the potential deal: “While not viewed (or priced) as the ‘jewels in the Arcadia crown’, Dorothy Perkins, Wallis, and Burton are well-known brands that in the year to Sep-18 generated a sizeable £580m of revenue between them.<\/p>\n “These acquisitions would be very much consistent with boohoo’s successful approach to date, and we would view the brands as a good fit within the group, particularly given the recent Debenhams deal, through which all three traded.”<\/p>\n Boohoo issued the update as industry figures compiled by the Local Data Company showed retail store vacancy rates already at record levels<\/strong> in the three months to December amid a tough Christmas season.<\/p>\n Physical stores deemed non-essential retail, such as fashion, saw a stop-start 2020 as a result of pandemic restrictions.<\/p>\n The British Retail Consortium has warned the situation is only going to get worse as current lockdowns continue.<\/p>\n It has demanded further government support for the retail sector including an extension to the business rates holiday beyond April.<\/p>\n<\/p>\n