Debenhams to Remain Online-Only Amid Boohoo Rebrand, No Plans to Reopen Physical Stores

Debenhams, owned by Boohoo Group, has no plans to reopen physical stores, despite launching pop-up stores in different locations. The group's shares fell after it revealed plans to rebrand itself and change its name to Debenhams Group, focusing on online sales, particularly through the Debenhams marketplace, which is expected to drive growth.

In a significant move, Debenhams, the British department store chain owned by Boohoo Group, has announced that it has no plans to reopen its physical stores despite launching pop-up locations in various areas [1]. Instead, the company will focus on its online sales and rebrand itself as Debenhams Group.

According to reports, Boohoo, a pure-play online retailer, signed an agreement to acquire parts of Debenhams' business, including all in-house brands and websites, for a cash consideration of 55 million pounds [1]. The acquisition will take full effect after the completion of the current stock liquidation program, which is ongoing online.

The closure of Debenhams' physical stores does not affect the company's former holding, Magasin du Nord in Denmark, which continues to operate independently. Boohoo intends to rebuild and relaunch the Debenhams platform as part of its ambition to become a top 10 retail website in the UK by traffic [1].

Debenhams' online platform had approximately 300 million UK website visits per year before the acquisition, making it a significant player in the UK retail market. Boohoo also acquired customer data and related business information, as well as selected contracts, from Debenhams [1].

The transaction does not guarantee the retention of jobs for Debenhams' employees beyond the winding-down period, and some job opportunities may be provided by Boohoo [1]. However, Geoff Rowley, joint administrator and partner of FRP Advisory, expressed optimism that a new Debenhams-branded business will emerge beyond the pandemic [1].

The acquisition of Debenhams' assets is not Boohoo's first foray into the UK retail market. In recent years and months, the company has bought struggling British retail chains Karen Millen, Oasis, and Warehouse, as well as operating Pretty Little Thing, another fashion site [1].

References:
[1] WWD. (2021, March 8). Boohoo Snaps Up Debenhams Brand, Websites. Retrieved from https://wwd.com/feature/boohoo-snaps-up-debenhams-brand-websites-1234712564/