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Summary
- On Friday, Boohoo confirmed that it was in discussions with the Arcadia group to strike a deal over three of its brands.
- The talks were in early stages and further information would be given by the fashion retailer soon.
UK’s leading online fashion group Boohoo Group PLC (LON: BOO) is in news again for being in talks with the Arcadia Group for the acquisition of Dorothy Perkins, Wallis, and Burton -- three of its prominent brands.
(Image Source: © Kalkine Group 2021)
The retailer confirmed on Friday, 29 January, that it is in exclusive talks over the acquisition of the three prime brands with administrators of the Arcadia group. However, there is no assurance that it will lead to an agreement, said the fashion firm.
As per media reports, the Boohoo bosses have indicated that the firm might shell out around £25 million for taking over the three brands. If finalised, the deal could be announced in the coming week.
Sir Philip Green’s fashion giant, the Arcadia group is owned by his wife in Monaco, which comprises of some well-known brands such as Burtons, Evans, Dorothy Perkins, Miss Selfridge, Topshop, and Wallis. The fashion empire went into administration on 30 November 2020 after collapsing. Since then, the administrators have been seeking buyers to sell parts of the Arcadia group. Before entering administration, the group operated 444 stores across the UK and had a workforce of 13,000 employees. The website and the stores are allowed to operate till they find suitable buyers.
Asos following similar steps
On 25 January, Asos, the UK-based online fashion retailer, had revealed that it had been in exclusive talks with Arcadia's administrators to take over its brands such as Topshop, Topman, Miss Selfridge, and the HIIT. However, the online retailer confirmed that it wanted to buy only the brands, not their shops.
In a remark, Asos said that it was a compelling opportunity for it to buy strong brands that resonate well with its customer base. Though it also made clear that the talks were in preliminary stages and there was no certainty of them turning into a transaction at this stage.
Two other bidders -- Authentic Brands along with JD Sports and Shein, a Chinese retailer, have been pursuing to buy Topshop.
The shares of ASOS (LON:ASC) were down by 5.28 per cent at GBX 4,485.00 on 29 January at 1:54 PM GMT on the London Stock Exchange.
Related Read: Asos (LON:ASC) In Talks to Buy Arcadia’s Famous Brand Topshop
Recent Acquisition of Boohoo
On 25 January, Boohoo disclosed that it had entered into an agreement to buy Debenhams for £55 million. Boohoo said it would be taking over all the intellectual property assets of Debenham and prompting closure of all its stores, brands, and even the website in Britain permanently, which has eventually resulted nearly 12,000 people losing jobs.
The shares of BOO were hovering around GBX 340.50 on 29 January at 1:56 PM GMT on the London Stock Exchange, up by 1.92 per cent from its previous day’s trading session.
Related Read: Boohoo (LON:BOO) Takes Over Debenhams for £55 Million
