Blow to High Street as closure of Tayside and Fife shops confirmed

The closure of more shops in Tayside and Fife has been confirmed.

In the latest blow to the High Street, Dorothy Perkins, Wallis and Burton shops will stay closed after lockdown restrictions lift.

It comes as internet retailer Boohoo acquired the Arcadia brands for £25.2 million. The deal is for the inventory, e-commerce and digital assets of the businesses.

The move affects Dorothy Perkins shops in Arbroath, Kirkcaldy and Dunfermline. The Fife shops share space with Burtons.

Nationally, in the region of 2,500 jobs will be lost. About 260 jobs, mainly head office roles, will be saved as they move with the brands to Boohoo. These include jobs in design, buying and merchandising, and the businesses’ digital wings.

Some other staff will be kept on during a monthslong transition period, Deloitte said.

The deal will see the brands transfer over to online fashion giant Boohoo, whose fortunes have increased as those of its high street predecessors waned.

Last month Boohoo said it had bought the brand and website of department store chain Debenhams for £55m, but it did not take on the company’s 118 stores, meaning 12,000 jobs were likely to be lost.

Boohoo chief executive John Lyttle said: “We are delighted to announce the acquisition of assets associated with the online businesses of 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 fit for the current market environment.

“We have a successful track record of integrating British heritage fashion brands on to our proven multi-brand platform, and we are looking forward to bringing these brands on board.”

Boohoo chairman Mahmud Kamani added: “This is a great acquisition 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 in global fashion e-commerce.”

Arcadia was long one of the biggest players on the UK high street, but the pandemic dealt a final blow to the business, which had struggled with a shift in shopping behaviour in recent years.

In December it entered administration, putting thousands of jobs on the line. While the business’s demise has been partly brought about by a shift to online retail, its brands will now continue to live online, after several deals.

Last week Boohoo rival Asos, also an online player, signed a £330m deal to buy Topshop, Topman, Miss Selfridge and HIIT from Arcadia.

Administrators have now sold all of Arcadia’s brands, raising around £500m to pay off creditors.

Dorothy Perkins and Burtons in Kirkcaldy High Street.