Jobs axed after fashion buy-out
Sunderland shop staff are among thousands who have lost their jobs with the closure of three familiar High Street names.
Around 2,450 staff nationwide were told yesterday that their jobs have been axed after clotheswebsiteBoohoobought Dorothy Perkins, Wallis and Burton for £25.2million.
Thedealisfortheinventory, e-commerce and digital assets of the businesses, which were owned by Sir Philip Green’s Arcadia retail empire when it entered administration in December.
But it does not include the brands’ 214 remaining shops, which will close, according to administrators from Deloitte.
The three brands all have outlets with Sunderland’s Debenhams store and as part of OutfitatWashingtonGalleries Retail Park.
Boohoo announced last month that it has also bought the Debenhams brand and website for £55million – but it did not take on the company’s 118 stores, meaning around 12,000 jobs were likely to be lost.
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 wellknown 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.
“Wehaveasuccessfultrack 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.”
Arcadiawasonceoneofthe biggest players on the UK high
street, but the Covid-19 pandemic dealt a final blow to the business, which had struggled withashiftinshoppingbehaviour in recent years.
In December it entered administration, putting thousands of jobs on the line.
While the business’s demise has been partly brought aboutbyashifttoonlineretail, itsbrandswillnowcontinueto live online, after several deals.
Last week Boohoo rival Asos, also an online player, signed a £330million deal to buy Topshop, Topman, Miss Selfridge and HIIT from Arcadia.
Administrators have now sold all of Arcadia’s brands, raising around £500million to pay off creditors.