THREE major retailers look set to disappear from the high street following a buy-out from an online-only company.
Clothes website Boohoo has tied up a £25.2 million deal to buy Burton, Dorothy Perkins and Wallis, which entered administration in December along with the rest of Sir Philip Green’s Arcadia.
Northwich and Winsford have branches of Burton, while Dorothy Perkins remains in Winsford following the Northwich store’s closure last August.
But the Boohoo deal does not include the three brands’ stores, and administrator Deloitte says all 214 stores will close as a result, with around 2,450 staff set to lose their jobs nationwide.
John Lyttle, Boohoo chief executive, said: “We are delighted to announce the acquisition of the assets associated with the online businesses of the three established brands Burton, Dorothy Perkins and Wallis.
“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 onto our proven multi-brand platform, and we are looking forward to bringing these brands on board.”
The deal comes after Asos bought other Arcadia brands, including Topshop and Topman, out of administration a week ago.
It means that all of Arcadia’s brands have been sold out of administration – but they will not survive as high street stores.
Boohoo chairman Mahmud Kamani added: “This is a great acquisition for the group as we extend our market share across a broader demographic, capitalising on growth opportunities as more and more customers shop online.
“We continue to grow our portfolio of brands and customer base, strengthening our position as a leader in global fashion e-commerce.”
Staff have been emailed this morning and will be informed over the course of the day about their jobs, PA reports.
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