The fast fashion retailer that is Boohoo just confirmed the purchase of the Debenhams brand and website for £55m. Although this has saved Debenhams in a sense, the bad news is that Boohoo are not taking on any of the firm’s remaining 118 high street stores, or even the employees.
Boohoo described it as a “transformational deal” and a “huge step” – which may be so but it still means that up to 12,000 people will lose their jobs. The Debenhams brand is 242 years old, but you could say it’s become a victim of that legacy. Rooted in the high street with assets that were already expensive and as a result of CoVid19 impossible to make pay – the chain is now faced with closure.
The administrators brought in to save the business have failed to secure a rescue deal but said that they had undertaken a “thorough and robust process” to achieve the best outcome for Debenhams’ stakeholders.
This deal will now allow a new Debenhams-branded business to emerge under new ownership, including an online operation and potentially an international franchise network that will operate under licence using the Debenhams name.
This is not a first for BooHoo – it has already snapped up Oasis, Coast and Karen Millen – but not the associated stores.
Its executive chairman, Mahmud Kamani, said: “This is a transformational deal for the group, which allows us to capture the fantastic opportunity as ecommerce continues to grow. Our acquisition of the Debenhams brand 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 said Debenhams was expected to relaunch on Boohoo’s web platform later this year.
