Online fast fashion retailer Boohoo has rescued Debenhams’ brand and website for £55m, but has not saved its remaining 118 stores.
The retailer’s closing down sale will continue in stores for several weeks until stock liquidation is completed, after which all of its UK stores will close.
The department store retailer began winding down 124 stores last month. Earlier this month it announced its intention to close six stores, including its flagship Oxford Street location.
Administrators from FRP Advisory said they had undertaken a “thorough and robust process” to gain “the best outcome for Debenhams’ stakeholders”.
They said the transaction would “allow a new Debenhams-branded business to emerge under strong new ownership, including an online operation and the opportunity to secure an international franchise network that will operate under licence using the Debenhams name”.
Geoff Rowley, joint administrator and partner at FRP Advisory, said: “I expect that the agreement with Boohoo may provide some job opportunities but we regret that this outcome does not safeguard the jobs of Debenhams’ employees beyond the winding down period.”
Mahmud Kamani, executive chairman of Boohoo, said: “This is a transformational deal for the group, which allows us to capture the fantastic opportunity as e-commerce continues to grow. Our ambition is to create the UK’s largest marketplace.
“Our acquisition of the Debenhams brand is strategically significant as it represents a huge step which accelerates our ambition to be a leader, not just in fashion e-commerce, but in new categories including beauty, sport and homeware.”
Debenhams is expected to relaunch on Boohoo’s online platform in Q1 2022.
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