Tag Archives: high street

Boohoo buys Debenhams brand and website – but no rescue of high street stores or workforce

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The online fashion giant, Boohoo has bought the Debenhams brand in a £55 million deal that will not include rescuing the retail chain’s physical stores or its workforce.

Instead, Boohoo plans to “rebuild and relaunch the Debenhams platform” as it continues in its ambitions to lead the fashion ecommerce market, while growing into new categories such as beauty, sport, and homeware.

The brand has even hinted at taking on the likes of Amazon in the ‘creation of the UK’s largest marketplace’ across the sectors, as it expands the range of products sold via Debenhams marketplace by maintaining current third party relationships and expanding further.

The deal does not include the rescue of Debenhams’ remaining stores, which, according to those close to the topic, are now likely to be broken up and sold to the likes of Mike Ashley’s Frasers Group.

The announcement brings an end to Debenhams’ high street brand, a position it has held since 1778.

Debenhams has around 300 million website visits a year, making it a top ten UK online retailer. It’s this strength that Boohoo will now build a relaunch from.

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.”

Founder and executive chairman, Mahmud Kamani, added: 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 had already announces significant job losses and the permanent close of six stores, including its flagship outlet on London’s Oxford Street.

US retail giant Authentic Brands makes plans for Debenhams and Arcadia Group takeover

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The US retail giant, Authentic Brands, has divulged plans for a double takeover of the collapsed department store chain Debenhams and Topshop-owner Arcadia Group.

According to a report from The Sunday Telegraph, Authentic Brands, the owner of the New York department store brand, Barneys, has been in talks with the administrators and was lining up bids for both companies.

The Sunday Telegraph reported that the firm, which was founded by Canadian Jamie Salter in 2010, was lining up bids for both brands.

Authentic Brands comes with the backing of heavyweight financiers such as Blackrock and Leonard Green & Partners. Prior to the pandemic, it was on course to book turnover of $15bn. Throughout the crisis, founder Jamie Salter has seized the opportunity offered to buy up a number of struggling brands, including Forever 21 and Brooks Brothers.

Both Debenhams and Arcadia Group are to offer comment on the latest update.

Last week, Mike Ashley’s Frasers Group said it was in negotiations to buy Debenhams from administrators in a rescue deal. It was also interested in participating in the sale of Philip Green’s collapsed Arcadia Group.

Frasers, formerly Sports Direct, said that it hoped a deal could be agreed and jobs at Debenhams saved after the Covid-19 pandemic sunk its business, but cautioned that the transaction was complicated and talks needed to take place quickly.

Administrators for Debenhams said earlier in December it would be wound-down, closing all its shops after 242 years in business and putting 12,000 jobs at risk. Green’s Arcadia fashion group collapsed into administration late in November putting more than 13,000 jobs at risk.

Mike Ashley’s Frasers Group in ‘potential rescue talks’ with Debenhams

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Retail tycoon Mike Ashley’s Frasers Group is in talks over a ‘potential rescue transaction’ for the British department store Debenhams. The brand fell into administration last week, putting some 12,000 jobs at risk.

Frasers has said that it was ‘in negotiations with the administrators of Debenhams’ UK business’ on a possible deal, but it has warned that time is short for the retail brand.

In a stock market statement, it said: “Whilst Frasers Group hopes that a rescue package can be put in place and jobs saved, time is short and the position is further complicated by the recent administration of the Arcadia group, Debenhams’ biggest concession holder.

“There is no certainty that any transaction will take place, particularly if discussions cannot be concluded swiftly.”

Details of the talks were first disclosed over the weekend by The Sunday Times.

Finance director Chris Wootton reportedly said that under the deal, Frasers would “hope to be able to save as many jobs as possible.”

Debenhams announced that it was to wind down its business and close all 124 stores after JD Sports ended discussions over a rescue deal for the struggling department store chain. Talks ended between the two companies following the collapse of Arcadia Group.

The sports chain was the only remaining bidder for the company, but with the news of the collapse of Arcadia Group last week – the biggest concession stand operator across Debenhams stores – so too came the decision of JD Sports to terminate its talks of a takeover.

Debenhams slid into insolvency in April this year and has been on the search for a buyer since the summer. Without a buyer, the business faces going into liquidation or being wound down. This spring saw Debenhams axe 6,500 jobs. Its current predicament puts a further 12,000 at risk.

Debenhams to close all 124 stores as JD Sports rescue talks are terminated

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Debenhams is to wind down the business and close all 124 stores after JD Sports ended discussions over a rescue deal for the struggling department store chain. Rescue talks ended between the two companies following the collapse of Arcadia Group yesterday afternoon. The latest developments now puts 12,000 high street retail jobs at risk.

The sports chain was the only remaining bidder for the company, but with the news of the collapse of Arcadia Group yesterday – the biggest concession stand operator across Debenhams stores – so too has come the decision of JD Sports to terminate its talks of a takeover.

In a brief statement to the London Stock Exchange, the company said: “JD Sports Fashion, the leading retailer of sports, fashion and outdoor brands, confirms that discussions with the administrators of Debenhams regarding a potential acquisition of the UK business have now been terminated.”

Debenhams slid into insolvency in April this year and has been on the search for a buyer since the summer. Without a buyer, the business faces going into liquidation or being wound down. This spring saw Debenhams axe 6,500 jobs. This morning’s news now puts a further 12,000 at risk.

Geoff Rowley of FRP Advisory, the joint administrator to Debenhams, said: “All reasonable steps were taken to complete a transaction that would secure the future of Debenhams. However, the economic landscape is extremely challenging and, coupled with the uncertainty facing the UK retail industry, a viable deal could not be reached.

“The decision to move forward with a closure programme has been carefully assessed and, while we remain hopeful that alternative proposals for the business may yet be received, we deeply regret that circumstances force us to commence this course of action.”

Debenhams’s former chairman Sir Ian Cheshire said that the business had been caught out with too many high street outlets on long rental leases.

“You’ve got to be so much faster and so much more online,” he said.

It comes as some 13,000 staff of Sir Philip Green’s Arcadia Group face an anxious wait following the business collapsing into administration. The high street giant, which includes the Topshop, Dorothy Perkins and Burton brands, has hired Deloitte to handle the next steps after the pandemic “severely impacted” sales across its brands.

Ian Grabiner, chief executive of Arcadia, said: “This is an incredibly sad day for all of our colleagues as well as our suppliers and our many other stakeholders … in the face of the most difficult trading conditions we have ever experienced, the obstacles we encountered were far too severe.”

Shoppers fuel sales growth in October but BRC warns that lockdown easing by December “is vital for survival”

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Shoppers taking the opportunity to stock up on home comforts and food supplies ahead of the England-wide lockdown helped total retail sales increase 4.9 per cent in the four weeks to October 31, indicating some respite for the UK retailer hampered by coronavirus restrictions this year.

Despite the lift – one that measures in immediate contrast to the 0.3 per cent decline in the same period the year prior – KPMG has warned that the “gap between winners and losers” this year will be ‘stark’. It has said that while online sales remain high and are set to grow further during Black Friday and lockdown, not all retailers are in a position to adapt.

According to the British Retail Consortium-KPMG Retail Sales Monitor, UK retail sales, excluding temporarily closed stores and including online sales, increased 5.2 per cent on a like for like basis. Non-food items fell nine per cent and 11.4 per cent in like for like and total terms respectively – but this is an improvement from the 12-month average decline of 19.6 per cent.

while Helen Dickinson, BRC chief executive has hailed October 2020 as a month of strong sales growth for the UK, it has come with a caveat.

“Tightening restrictions across the United Kingdom and speculation towards the end of the month of an England-wide lockdown prompted customers to stock up on home comforts and food supplies,” she said. “During an incredibly challenging year for the industry, many retailers had finally thought that they were finding their footing.

“The new lockdown in England will now throw away this progress as we enter the crucial Christmas trading period, and we estimate that £2 billion of sales per week will be lost this month.

“It is therefore vital that retailers are able to trade from December 3 and we are asking government to urgently provide clarity about the criteria for reopening and to ensure that affected businesses are supported in the coming months.”

KPMG retail partner Don Williams, added: “The gap between winners and losers is stark with home-related items, like furniture and technology, putting in a strong performance while the improvement in fashion sales was short-lived. Online sales remain high and are set to grow further during Black Friday and lockdown.

“Not all retailers are in a position to take advantage of this shift in customer behaviour, which has been accelerated by circumstance and for many is now both choice and habit.

“The important Golden Quarter is likely to be unrecognisable this year, with some retailers losing a month’s worth of trading opportunity.

“Capacity is also likely to be a significant challenge over the coming months as there is a limit to online delivery availability and social distancing has reduced the numbers of customers that can safely shop in store at any one time.

“Some retailers will thrive in the new environment; others will find it bleak. The locked-in step-up in online activity will undoubtedly lead to further investments in digital capability and partnerships.

“Digital strategies have never been more vital, but those strategies must be cost-efficient, too.”

The Pokémon Company grows European apparel portfolio with Erve Europe and Van Der Erve

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The Pokémon Company International is expanding its European reach once more, having tapped Erve Europe/Van Der Erve, Europe’s licensed apparel and brands specialist, to develop kids and adult apparel for the German, Austrian and Swiss markets.

The new deal will see fashion powerhouse Erve Europe / Van Der Erve collaborate with Pokémon for a collection of kids’ and adult daywear, nightwear, and accessories, all of which is planned to launch at retail in 2021 across Germany, Austria, and Switzerland.

Specialists in fashion-forward licensed apparel, Erve Europe / Van Der Erve are front runners in design, sourcing, and distribution of branded apparel and accessories in Europe. A preferred supplier of sustainable fashion to leading retailers, they work with department stores, fashion retailers, supermarkets, hypermarkets, discount chains, and resellers, creating bespoke items and collections on demand.

Mathieu Galante, licensing director EMEA for The Pokémon Company International, said: “We are delighted to be working with Erve Europe / Van Der Erve. Its vast experience from 35 years in the industry, exceptional quality, and sustainable practices make it the perfect partner to further grow Pokémon’s fashion presence in Germany, where – as across the whole of Europe – demand for Pokémon apparel and accessories continues to expand.”

Pokémon’s partnership with Erve Europe / Van Der Erve further strengthens its increasing status as a fashion icon and high-street staple. Its growing apparel offering now includes successful ranges at global giants such as Zara, H&M, Bershka, Pull&Bear, and Undiz, innovative collaborations with the likes of Adidas, UNIQLO, and Original Stich, plus capsule collections from leading fashion brands and designers including GCDS, Jeremy Scott, and Bobby Abley.

High street fashion retailer H&M to close around 250 stores as it sees shoppers move online

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The high street fashion retailer, H&M has confirmed its plans to close down around 250 of its stores across the globe next year, following the surge of consumers moving to online shopping at the hands of the Covid-19 pandemic.

The Retail Gazette reports that the Swedish retail giant stated that around one quarter of its more than 5,000 stores worldwide will have the chance to renegotiate or end their leases next year, allowing the company to shut down some stores in the process.

It also stated that it will be investing greater in digital and optimising its store portfolio to ‘react to the rapid changes in consumer behaviour that has resulted from the pandemic.’ This is all emerges as H&M sees sales continue to recover throughout September, yet still remain five per cent lower than the same period last year.

The retailer reported that its pre-tax profits fell to 2.37bn Swedish krona (£210 million) for the nine months to August 31, and that sales during the nine month period were “significantly negatively affected by the Covid-19 situation, particularly in the second quarter when stores were temporarily closed in most markets.”

H&M chief executive, Helena Helmersson has said: “More and more customers started shopping online during the pandemic, and they are making it clear that they value a convenient and inspiring experience in which stores and online interact, and strengthen each other.

“The substantial investments made in recent years have been very important for our recovery, and we are now accelerating our transformation work further to meet customers’ expectations. We are increasing digital investments, accelerating store consolidation and making the channels further integrated.

“To ensure that our offerings are relevant to customers and improve availability in all channels, speed and flexibility will be even more important in the future, particularly in the supply chain.

“Covid-19 has also highlighted the importance of sustainability. Demand for good value, sustainable products is expected to grow in the wake of the pandemic and our customer offering is well positioned for this. Through our work to become circular and climate positive we are increasing the share of sustainable and renewable materials and we are developing new revenue streams.”

Hamleys expansion and investment ‘will be significant and worthy of a 260 year old brand’

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Hamleys is pushing forward with expansion plans for its 260 year old toy selling business which includes a refurbishment of its iconic London store on Regent Street and the potential to open new stores across the UK.

The toy retailer’s current owner Reliance Brands has underlined its plans to for ‘significant investment’ in the Hamleys name, stating that the expansion is a ‘sign of confidence in the brand and strategy’, rather than a ‘foolhardy ambition.’

The plans arrive at an interesting time for the high street, which has been hit by the pandemic and the surge in online shopping that the UK’s lockdown measures have facilitated in recent months. Recent months and weeks have seen numerous British retailers implement job cuts and store closures, citing the coronavirus as the cause of the decline.

However, Summit Yadav, CEO of Reliance Brands told Bloomberg that while ‘it has been quite an eventful journey,’ it would not be holding back making long-term investments. Yadav has declined to say just how much money is being invested in the expansion, but described the sum as ‘significant and worthy of a brand that is nearly 260 years old.’

“The Hamleys experience cannot be diluted,” he said.

Reliance, owned by the richest man in India, Mukesh Ambani, bought the 259-year-old toy retailer from Chinese footwear group C.banner International for £68m.

During the acquisition, Reliance said the transaction would “catapult Reliance Brands to be a dominant player in the global toy retail industry”.