The fast fashion retailer Boohoo has entered exclusive talks to buy the Dorothy Perkins, Wallis and Burton brands.
The brands are part of Sir Philip Green’s fashion empire, Arcadia Group, which collapsed into administration last year.
The development comes days after Boohoo paid £55m to buy the 243-year-old Debenhams brand in a deal that will result in the chain’s remaining 118 high street stores disappearing and the likely loss of 12,000 jobs. The online-only retailer Boohoo, which has reportedly offered about £25m for the trio of Arcadia brands, will take the same approach and shut all Dorothy Perkins, Wallis and Burton high street stores and keep few existing staff.
“Boohoo Group confirms that it is in exclusive discussions with the administrators of Arcadia over the acquisition of the Dorothy Perkins, Wallis and Burton brands,” the company said. “These discussions may or may not result in agreement of a transaction. A further announcement will be made when appropriate.”
Boohoo, which owns brands including Pretty Little Thing and Nasty Gal, has already taken advantage of the damage the coronavirus pandemic has wrought on traditional retailers by buying the Oasis, Coast and Karen Millen brands out of administration but not their high street stores.
On Monday, the online fashion retailer Asos entered exclusive talks to buy the Arcadia brands Topshop, Topman, Miss Selfridge and HIIT. Topshop, Arcadia’s prime asset, could fetch between £250m and £300m.
Administrators have been seeking buyers for parts of Arcadia Group, which as a whole employed 13,000 staff and had 500 stores across the UK, since November. Evans, its plus-size clothing brand, was sold to City Chic Collective, an Australian retailer, for £23m.