Sheffield Debenhams store set to close as Boohoo pays £55m for website
Fashion retailer Boohoo has bought Debenhams brand and website for £55 million, but the future of two of its stores in Sheffield remains uncertain.
This is because Boohoo will not take any of the firm’s remaining 118 High Street stores, one at The Moor and one at Meadowhall or its workforce, meaning that up to 12,000 jobs at the department store chain are set to go.
Its executive chairman, Mahmud Kamani, told the BBC: "This is a transformational deal for the group, which allows us to capture the fantastic opportunity as ecommerce continues to grow. Our ambition is to create the UK's largest marketplace.
"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."
The 242-year-old Debenhams chain is already in the process of closing down, after administrators failed to secure a rescue deal for the business.
A closing-down sale at 124 Debenhams stores began last December, as the administrators continued to seek offers for all or parts of the business.
The company announced recently that six shops would not reopen after lockdown, including its flagship department store on London's Oxford Street.
Boohoo has already bought a number of High Street brands out of administration including Oasis, Coast and Karen Millen, but not the associated stores.
Boohoo said Debenhams was expected to relaunch on its web platform in early 2022.
In the meantime, Debenhams will continue to operate its website for an agreed period.