Fashion retailer Boohoo has agreed to buy two high street fashion favourites after the brands went into administration earlier this year.
Warehouse and Oasis, which had stores across the UK, collapsed in April and were forced to shut 92 outlets – a move which resulted in the loss of around 1,800 jobs. They were sold to investment firm Hilco Capital.
It is reported that Manchester-based Boohoo paid £5.25 million for the brands, which made £46.8 million in sales last year, reports the ManchesterEveningNews.
The firm now has nine brands in its portfolio – which now includes the likes of NastyGal, PrettyLittleThing, Karen Millen, MissPap and Coast.
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Speaking about Boohoo’s decision to buy Warehouse and Oasis, Sophie Lund-Yates, equity analyst at Hargreaves Lansdown, told the BBC: “It’s up to Boohoo to rejuvenate them and hope they resonate well with its traditionally younger, more fashion forward customer base.
“It’s a similar move to the Karen Millen and Coast acquisitions, but while we’ve heard trading’s going well with these additions, we haven’t had any numbers to crunch, so it’s hard to say what the big picture looks like.”
Boohoo has so far weathered the Covid-19 crisis better than its high street rivals, with total group revenues rising 45 per cent in the quarter to May 31.
It said sales were impacted by the lockdown from the middle of March to early April, with a “marked” fall in sales initially, though trading improved in April and bounced back strongly in May.
Boohoo shifted its focus towards loungewear and so-called athleisure ranges that have become popular as Britons stayed at home.
John Lyttle, Boohoo group chief executive, said: “During unprecedented and challenging times, the group has delivered a very strong trading and operational performance.
“Whilst there is a period of uncertainty within the markets in which we operate, the group is well-positioned to continue making progress towards leading the fashion e-commerce market globally.”