Online fashion retailer Boohoo have bought the Debenhams brand and other business assets, including all its in-house brands and websites, for £55m.
The “transformational deal” however does not include any of the chain’s 124 stores or safeguard jobs, putting 12,000 employees livelihoods at risk.
The 243-year-old department store has been in administration since April 2020, with business advisory firm FRP Advisory last month beginning a liquidation process, to close the brand down after administrators failed to secure a rescue deal for the business.
In a statement released accompanying the news of the takeover FRP explain: “This transaction will allow a new Debenhams-branded business to emerge under strong new ownership, including an online operation and the opportunity to secure an international franchise network that will operate under licence using the Debenhams name.”
“Our ambition is to create the UK’s largest marketplace.”
“The acquisition of the Debenhams brand is an important development for the group as we seek to capture incremental growth opportunities arising from the accelerating shift to online retail.” Boohoo Chief Executive John Lyttle says of the deal.
With Executive Chairman, Mahmud Kamani, adding: “This is a transformational deal for the group, which allows us to capture the fantastic opportunity as eCommerce continues to grow. Our ambition is to create the UK’s largest marketplace.”
“Our acquisition of the Debenhams brand is strategically significant as it represents a huge step which accelerates our ambition to be a leader, not just in fashion eCommerce, but in new categories including beauty, sport and homeware.”
Boohoo have said Debenhams is expected to relaunch on Boohoo’s web platform later this year, however in the meantime, Debenhams will continue to operate its website for an agreed period.
