Boohoo buys Debenhams but all stores will close. (PA) Online fashion retailer Boohoo has bought the Debenhams brand and website for £55 million in a deal that will see the brand operate as an online-only retailer from next year. Bosses confirmed the deal will not include stores as part of the structured winding down of the business. Debenhams were hit by a fall in sales amid the coronavirus pandemic and confirmed plans for the winding down of operations in December after rescue talks with JD Sports fell through. But with stores closing across the 242-year-old brand, it is unlikely many of the remaining 12,000 jobs will be saved, including those at its store in Redditch s Kingfisher Shopping Centre.
Boohoo shareholders appeared to welcome the deal, with shares up 4per cent in early trading on Monday.
However, Shore Capital retail analyst Greg Lawless warned that an online-only operation could hit Debenhams’ beauty sales.
He said: “The big question in beauty is whether the big beauty brands – Clinique and Channel – will remain with Boohoo longer term.
“The Debenhams number one position in premium beauty was predicated on counter sales, which will not form part of this acquisition.”
In hints that it intends to take on the might of Amazon, Boohoo said it would create the UK’s largest marketplace across fashion, beauty, sport and homeware – expanding the range of products sold via Debenhams marketplace by maintaining current third-party relationships and expanding further.
She said high streets across the UK had faced “considerable challenges” despite support packages including grants and business rates schemes. “Support will be available through our employment and training schemes to help people find alternative employment as quickly as possible,” Cllr Mudd added. “This will include a dedicated point of contact and a range of assistance including help with writing/updating CVs, job searches, re-training opportunities and financial management.” Kevin Ward, manager of Newport Now BID, which represents the interests of businesses in the city centre said, while the news was not unexpected, it was still a “significant blow to high streets across the UK.”
Debenhams in Derby to close for good as new owners announce all stores to shut
The iconic retail chain has been in financial difficulties for some time
Updated
The video will auto-play soon8Cancel
Play now
Never miss another Derbyshire story by signing up to our free email updatesInvalid EmailSomething went wrong, please try again later.
Subscribe
When you subscribe we will use the information you provide to send you these newsletters. Sometimes they’ll include recommendations for other related newsletters or services we offer. OurPrivacy Noticeexplains more about how we use your data, and your rights. You can unsubscribe at any time.