With ASOS working to secure Topshop & Miss Selfridge, Boohoo has turned its attentions to taking Burton, Dorothy Perkins and Wallis from Arcadia Group administrators. These would sit well in the Boohoo empire which, with Debenhams online business, as well as the other brands it has acquired in recent months including Oasis, Warehouse, Coast and Karen Millen, Boohoo will have an offering that spans the teen to mid-fifties consumer segment for clothing.
Boohoo is most unlikely to want any of the related Arcadia Group stores or staff which will inevitably result in significant job losses and is also unlikely to need to make much of an investment in these now tired brands. A figure of around £25m has been mooted for the brands, online business and IP.
Boohoo said in a statement “Boohoo Group confirms that it is in exclusive discussions with the administrators of Arcadia over the acquisition of the Dorothy Perkins, Wallis and Burton brands. These discussions may or may not result in agreement of a transaction. A further announcement will be made when appropriate.”
Meanwhile, it transpires that the Greens (Philip & Tina) are in line to receive as much as £50m from the sale of Topshop as secured creditors (having made a secured loan to the business via their Aldsworth Equity entity). Topshop’s parent company is another secured creditor which may result in Arcadia’s not insignificant pension fund deficit being reduced. Back in December, it was reported that a £50m payment into the Arcadia Group pension fund was being brought forward by Lady Green but many believe that the Greens should be doing more.
There are some 700 unsecured creditors who are unlikely to see a penny from the proceeds of the Boohoo Group deal, if and when it closes.
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