According to recent reports, two popular fashion retailers in the United Kingdom Boohoo and ASOS have made major developments. As per today’s reports, both fashion retailers have taken huge steps in the expansion of their business.
The sources have informed that Boohoo has already acquired the Debenhams brand. On the other hand, ASOS is currently in talks with Philip Green to acquire Arcadia Group. The Arcadia Group is the collapsed brand that was launched by Philip Green.
The recent moves made by the companies are the very proof of how much advantage the online firms have gained against the traditional ones. The pandemic has changed the way that the world perceived daily routines. People have realized the importance of online shopping, virtual, and remote transactions.
Before 2020, the majority of the people were used to visiting stores and purchasing stuff for their daily routines or occasional stuff. As the pandemic hit the world and people were forced to stay in their homes, they started realizing the importance of having e-commerce platforms.
Boohoo has confirmed that it has proceeded with the purchase of the entire Debenhams Company. It has revealed that it acquired all of the key property assets from Debenhams’ administrators. Some of the most important assets it acquired include business information, customer data, and selected contracts.
Boohoo revealed that it went for the purchase of all the assets for a whopping £55 million that translates into $75.4 million. However, Boohoo has confirmed that it will not be acquiring the Debenhams stores or the staff that is available there.
Debenhams had already dropped a hint that it was going to take a step that would surprise the entire Debenhams community. The company had stated last month that it was thinking about liquidating its assets and the action may end up putting 12,000 jobs at risk.
On the other hand, ASOS revealed that it is currently in talks with Philip Green’s administrators to finalize the deal. If the deal materializes, ASOS will see the brands Miss Selfridge, HIIT, Topshop, and Topman join its league.
The officials at ASOS also expressed their experience from the last year and their future endeavors. They stated that their company has gained a lot of popularity, adoption, and made lots of profits during the pandemic. Their platform is mainly online, which is why its sales increased during the pandemic.
During the pandemic, the people have realized the importance of making purchases through online platforms. The firm is eager to acquire the brands because they had a strong presence and user-base in the markets. The company will not be making a deal based on credit but will be deal through cash reserves.
It was back in November 2020, when arcadia met its demise and left 13,000 people jobless.