Boohoo (BOO) the online giant will acquire Debenhams for £55m in a strategic move that will enhance its online store offering new brands to help the online retailer to reach older clients as well as homewares and beauty products.
The deal will result in the closure of 118 Debenhams’ stores including its flagship store on London’s Oxford Street, as none of the shops are included in the sale. Debenhams stores are already in the process of closure after administrators failed to secure a rescue package for the company and its 12,000 staff stores and 118.
Debenhams (DEB) online shop has over 300 million visitors per year and is in the top 10 online retailers. The troubled company reported £400m in online revenues in its latest financial year.
Debenhams was looking for a buyer since August 2020, but they had not received any serious proposal.
Mahmud Kamani, Boohoo executive chairman noted:
“This is a transformational deal for our group, which allows us to capture the fantastic opportunity as e-commerce continues to grow. Our ambition is to create the country’s largest marketplace.
“Our acquisition of Debenhams brand is strategically significant as it represents a huge step which accelerates our ambition to be a leader, not just in fashion e-commerce, but in new categories including beauty, sport and homeware.”
Boohoo.com have bought the pandemic hit Karen Millen, Coast and Oasis but not their street stores.