Boohoo confirm talks about buying part of Arcadia group

The Burnley based online fashion retailer said it is negotiating with administrators of Arcadia over the future of the Dorothy Perkins, Wallis and Burton brands.

On Monday, Boohoo said that it has agreed a £55 million deal to buy the brand and website of Debenhams, but will not take over the company’s high street shops, which look set to close.

A deal could see Boohoo buy the three, excluding the HIIT brand sold at Burton, although the board stressed that so far these are only discussions and that no deal is guaranteed.

This comes on the same week that the Lancashire Telegraph discovered that the Issa brothers emerged as surprise contenders to buy Arcadia’s Topshop and Topman brands.

READ MORE: Billionaire Blackburn brothers in the running to takeover Topshop

At the same time, Asos, another online fashion retailer, said it is in exclusive talks to buy other parts of Arcadia.

Asos is interested in the Topshop, Topman, Miss Selfridge and HIIT brands.

The acknowledgement from Boohoo bosses came after Sky News revealed on Thursday that talks were ongoing between the company and administrators.

In a short statement to investors in London on Friday morning, Boohoo said: “Boohoo Group plc, a leading online fashion group, notes recent media commentary.

“The group confirms that it is in exclusive discussions with the administrators of Arcadia over the acquisition of the Dorothy Perkins, Wallis and Burton (excluding HIIT) brands.

“These discussions may or may not result in agreement of a transaction. A further announcement will be made when appropriate.”

According to Sky News, bosses at Boohoo have indicated they might pay a little over £25 million for the Dorothy Perkins, Wallis and Burton brands. A deal could be announced as soon as next week, the broadcaster said.

Arcadia employed around 13,000 people and ran 444 stores across the UK before it entered administration at the beginning of December.