The remaining stores of the British chain will most likely be closed as a result of the deal, and the brand itself will become an online retailer's property.
The popular online retailer of fashion and accessories is becoming the first buyer of the Debenhams brand. The parties have not yet officially announced the deal, and they can sign it within the next few days. The estimated purchase price is more than $68 million.
The Debenhams department store chain, whose history goes back more than 240 years, was one of the big retail names that failed to survive the coronavirus pandemic. The company went into administration mode in April 2020 and announced its department stores' mass closures and cut thousands of jobs. At the time of the closures' announcement, 124 of the chain's department stores remained open.
Since the summer of 2020, the company has been actively seeking buyers for the whole or parts of the business. Also known that talks about buying Debenhams led company Authentic Brands, the owner of department stores Barneys. JD Sports could be another new owner of the chain. Still, after the bankruptcy of Arcadia, the largest tenant of Debenhams, parties topped the negotiations.
Online clothing retailer Boohoo has become the most likely buyer at this point. The retailer is primarily interested in Debenhams' online assets and the legendary brand itself. It means there's a high probability that the chain permanently shut down all remaining department stores.
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25 JANUARY 2021, United Kingdom