Boohoo has finalised the purchase of Arcadia’s Wallis, Burton and Dorothy Perkins brands out of administration.
The fashion etailer has agreed to acquire the digital assets and intellectual property rights of all three brands for a cash sum of £25.2m.
Boohoo will not take on any of the brand’s physical assets, affecting 214 stores, but has purchased around £7.5m of forward-committed stock orders.
Around 260 existing staff members, including design, buying and merchandising, will transfer across to Boohoo also.
Boohoo rationalised the purchase as complementary to its existing brands to appeal to a broader demographic, including strengthening the etailers’ menswear division.
Wallis, Burton and Dorothy Perkins products will all be sold on individual pureplay websites, as well as Boohoo’s new Debenhams marketplace platform.
The transaction completes the sale of all of Arcadia’s brands after it collapsed into administration late last year.
Administrator Deloitte has raised more than £500m in the process.
Boohoo chief executive John Lyttle said: “We are delighted to announce the acquisition of the assets associated with the online businesses of the three established brands Burton, Dorothy Perkins and Wallis.
“Acquiring these well-known brands in British fashion out of administration ensures their heritage is sustained, while our investment aims to transform them into brands that are fit for the current market environment.
“We have a successful track record of integrating British heritage fashion brands onto our proven multi-brand platform and we are looking forward to bringing these brands on board.”
Boohoo founder and chair Mahmud Kamani added: “This is a great acquisition for the group as we extend our market share across a broader demographic, capitalising on growth opportunities as more and more customers shop online.
“We continue to grow our portfolio of brands and customer base, strengthening our position as a leader in global fashion ecommerce.”