Debenhams stores are set to close permanently after online retailer Boohoo has bought Debenhams in a £55million deal. The retailer has already suffered job losses and the closure of six stores, including its Oxford Street flagship store.
With consumer demand turning online this year due to the multiple lockdowns the UK has faced, multiple retailers have faced the consequences of having their stores shut for multiple months at a time.
The latest blow to the country’s high street comes from Debenhams, who has today announced that all of their high street stores will be closing for good.
Boohoo, which has become extremely popular in recent years, has already bought a number of high street brands out of administration, including Oasis and Coast.
Its executive chairman, Mahmud Kamani, said: “This is a transformational deal for the group, which allows us to capture the fantastic opportunity as e-commerce continues to grow. Our ambition is to create the UK’s largest marketplace.
READ MORE: H&M closes 250 stores as pandemic pushes shoppers online
“Our acquisition of the Debenhams brand is strategically significant as it represents a huge step which accelerates our ambition to be a leader, not just in fashion ecommerce, but in new categories including beauty, sport and homeware.”
Debenhams started liquidation procedures in December after being hit with the consequences of the pandemic.
At the beginning of the month, the retailer announced the closure of six stores including its Oxford Street store, as well as those in Portsmouth, Staines, Harrogate, Weymouth and Worcester.
The move was said to put 320 jobs at risk but now, with the collapse of the company, 12,000 staff are at risk.
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It is unsure how many of the Debenhams staff will be saved.
The Boohoo deal means that although there will be no physical stores on the high streets, the popular brand will be saved.
Boohoo chief executive, John Lyttle said: “The acquisition of the Debenhams brand is an important development for the Group, as we seek to capture incremental growth opportunities arising from the accelerating shift to online retail.
“We have developed a successful milt-brand direct-to-consumer platform that continues to disrupt the markets that we operate in.
“Good luck to staff at Debenhams for all the great service you have provided for many years, the store will be sorely missed,” a third Tweeted.
Others shared how sad they were that the brand was bought by Boohoo after the online retailer was recently slammed for ultra-low pricing.
One said: “Will the Boohoo takeover mean an increase in fast, disposable fashion or is it indicative of our online consumer habits?”
After an independent review, Mr Kamani said that they were working towards fixing the problems.
The closing down sale at Debenhams after the current owner of the brands, Sir Philip Green’s Arcadia Group fell into administration in November.
With Debenhams said to launch on Boohoo later this year, the retailer will continue to operate its website for an agreed period of time.
In a separate deal, Asos says it is in talks to buy Topshop, Topman, Miss Selfridge and HIIT brands out of administration.