Sunday, May 16, 2021

Boohoo snaps up Debenhams for £55m; Asos in exclusive talks to buy Topshop – business live | Business

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Boohoo aims to break into the retail big time with this deal. It marks quite a journey for the company which started as a fast fashion upstart and is now turning into a sprawling empire, by scooping up household names which have fallen into distress.

Showing just how far the once mighty have fallen, boohoo has only had to dip a little into its deep cash pockets to snap up the department store chain’s most precious assets. It’s paying £55m from its available cash balance which stood at £386.9m at the end of 2020.

Boohoo is turning its back on Debenhams entire store estate, seeing little value in bricks and mortar stores, as the shift to digital shopping intensifies during the pandemic.

Instead it believes that the brands and website will help it create the UK’s largest marketplace and position it to propel into international expansion.

It sees acquiring the home, beauty and sports assets sold by Debenhams as a big prize, allowing it to enter new markets, and expand from its pure fashion base.

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