boohoo Group PLC (LON:BOO) has confirmed it is in “exclusive discussions” with Arcadia’s administrators to acquire Dorothy Perkins, Wallis and Burton, excluding HIIT, brands.
The AIM-listed online retailer, which snapped up Debenhams’ brand and intellectual property for £55mln on Monday, said the talks may or may not result in a transaction.
It is understood that boohoo is willing to pay around £25mln for the trio of high street brands but would not incorporate stores or employees, Sky News reported.
It is all bad news for the UK high street which will see some historical names leave their brick and mortar sites.
Arcadia folded with an estimated £350mln pension black hole that owner Philip Green is under pressure to plug, and is now being managed by administrators at Deloitte, which was expecting the final bids last Monday. Up to 13,000 jobs are at risk.
Last month, Arcadia's fashion brand Evans was sold to Australian firm City Chic Collective for £23mln, although the deal did not include the plus-sized clothier’s store network but just the brand, its customer base and inventory.
Shares rose 1% to 335.7p on Friday morning.