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As with all clothing companies, which have been deemed non-essential during the coronavirus crisis, the physical stores for Dorothy Perkins, Burton and Wallis are currently closed due to lockdown restrictions. These shops won't reopen as the remaining stock has been sold to Boohoo as part of the deal. That means shoppers currently have to spend cash equal to the value of the gift card they want to use. We've asked Boohoo if this remains the case and we'll update this article when we know more.
This deal also didn't include physical shops either, meaning the remaining Debenhams sites are expected to shut, putting 12, jobs at risk. Instead, administrators will try to help a company find ways to repay debts or solve its cashflow problems. But if the administration process can't rescue the company or find a new owner, this can lead to liquidation. Arcadia Group confirmed it had gone bust on November 30, putting 13, jobs at risk, after sales dived across the brand due to the pandemic.
In an announcement last month, Arcadia Group also confirmed it would shut another 31 stores , including 21 of the group's Outfit shops. The latest troubles for Arcadia come after the retail empire was saved from the brink of collapse in by Sir Philip's wife and registered Arcadia owner Lady Tina Green after she agreed to bail him out. The move saw Arcadia shut 48 stores and axe 1, jobs. John Lyttle, CEO of Boohoo, said: "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.
Mahmud Kamani, executive chairman at Boohoo, said: "We continue to grow our portfolio of brands and customer base, strengthening our position as a leader in global fashion e-commerce. In mid-August, more than 43, retail jobs had been axed since the start of coronavirus lockdown as high streets struggled to survive.
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