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Online Retailer, Boohoo, Snaps Up Failing Arcadia Brands
Pureplay online retailers are taking over the once-great high street retailers in Britain. Boohoo has just snapped up the remaining Arcadia brands in the effort to diversify market share and customer base, further developing its online presence.
Online British retailer, Boohoo, has acquired the last few brands nested under the Arcadia Group umbrella. These brands include Dorothy Perkins, Burton and Wallis.
This purchase includes the brands only, meaning the stores currently operating will be forced to shut. Boohoo has agreed to pay another $14 million for clothing stock.
This comes as the retailer was nudged out by rival ASOS for the purchase of Topshop, Topman, HIIT and Miss Selfridge for $528.49 million last week.
Boohoo also recently acquired the Debenhams brand and e-commerce business for $98 million. The retailer has a heavy focus on e-commerce offerings, meaning the 240-year old retailer may now only survive online.
The recent acquisition of Arcadia Group’s final brands will have the same fate as other brands, with stores closing across the UK and restoring a digital-only focus.
This acquisition will expand the Boohoo brand, as well as its market share and customer base. Currently, the Boohoo market is young adults and teenagers. The acquisition Burtons will help further diversify the brand’s menswear range.
Arcadia Group has been experiencing a loss in sales for several years, further dragged down by a weak online presence and expensive store portfolio.
Approximately 260 jobs will be lost with this new acquisition, as stores shut and the retailers ramp up online offerings.
“Acquiring these well-known 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,” said John Lyttle, the CEO of Boohoo Group.
“We have a successful track record of integrating British heritage fashion brands onto our proven multi-brand platform, and we are looking forward to bringing these brands on board.”
Last year, Boohoo acquired Oasis and Warehouse for $8.93 million, adding it to its diverse portfolio. Further purchases include Karen Millen and Coast Brands, which were acquired in 2019.