Boohoo has announced plans to buy Debenhams’ website and brand in a £55 million deal.
The deal was announced this morning and while Boohoo is buying the brand’s name and website, it won’t save 118 department stores. A store closure could result in 12,000 job losses.
In a statement, Boohhu said: “This group only acquires intellectual property rights associated with the brand. This transaction does not include Debenhams retailers, stocks or financial services.”
Debenhams’ website is located on the UK’s top 10 retail websites and receives 300 million visits a year.
Mahmoud Kamani, executive chairman of Boohu, commented on the deal: Our ambition is to create the UK’s largest market.
“The acquisition of the Debenhams brand is strategically important as it represents a major step in accelerating our ambition to be a leader, not just in fashion e-commerce, but also in new categories such as beauty, sports and home products.”
Following the news, Boohoo’s shares jumped from 3.7% per share to 348.7p.
“We’re looking forward to seeing you in the world,” said John Lyttle, CEO of online retailers. “The acquisition of the Debenhams brand is a critical development for the group as it seeks to capture progressive growth opportunities resulting from an accelerated shift towards online retailing.
“We have developed a successful, multi-brand consumer platform that continues to disrupt the markets we operate.
“This acquisition is an exciting strategic opportunity to transform targeted addressable markets through the creation of an online market that leverages Debenhams’ high brand awareness and traffic through the development of beauty and fashion partnerships that connect brands and consumers. “It represents the following,” he added.
Boohoo shares currently trade at +3.39% at 344.17 (0836GMT).
