Online fashion retailer Boohoo has bought Dorothy Perkins, Wallis and Burton from the retail group Arcadia for £25.2 million, but the deal does not include the 214 high street stores associated with the fashion brands.
The brand names and online businesses have been passed over, but Boohoo will not take on the estimated 2,450 workers currently employed by Arcadia.
How many stores will shut?
The Boohoo deal will see the 214 shops permanently close.
Administrator Deloitte, which has been conducting the sale, said that around 2,450 staff would lose their jobs as a result of the Dorothy Perkins, Wallis and Burton sale.
Deloitte said staff had been contacted on Monday (8 Feb) by email and would be informed over the course of the day after job losses.
Approximately 260 jobs will be moving with the brands to Boohoo. These jobs will mainly be head office functions, and the digital part of the business.
The Manchester-based company said the takeover would be completed by Tuesday, with all three brands being fully integrated by May this year.
Completed Arcadia sell-off
The purchases of the Dorothy Perkins, Wallis and Burton brands completes the sell-off of Sir Philip Green’s Arcadia group, after it fell into administration last year.
The group’s other businesses, which included Topshop, Topman, Miss Selfridge and HIIT, were bought by online retailer ASOS last week.
Arcadia employed 13,000 staff members across its businesses, but only a fraction of the jobs will remain under the new owners.
Boohoo chief executive, John Lyttle, said: “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.
“We have a successful track record of integrating British heritage fashion brands on to our proven multi brand platform, and we are looking forward to bringing these brands on board.”