The online retailer Boohoo
has announced that it is going to purchase the UK department store Debenhams.
This will lead to it owning the firm’s brands and related intellectual
property. However, the latter’s 118 physical outlets are not included in the
acquisition. These will definitely close their doors.
The deal was concluded for £55 million and thanks to it, Debenhams will be able to keep its
e-commerce website operational, which is a good thing considering that it has
been in administration since 2020. This will be the case until Boohoo decides
to relaunch it. The online fast-fashion brand is not the only one on an
expansion mission. For instance, Asos, a fashion giant in the UK, is in a
competition to purchase Topshop, Topman and other brands from the
Arcadia Group that are being sold. Like Boohoo, it also wants to acquire only
the make/trademark, and not the physical stores.
This move shows how the shift towards online shopping is
hurting retail outlets. Debenhams has been part of the industry since 1778.
Back then, it was selling pricey fabrics and items such as parasols. Gradually,
it expanded to become the largest department store group in the UK. However, it
failed to compete with online retailers such as Asos
and Boohoo.
Debenhams stores will close down © Royalty-free image
Comments
Post a Comment