No need for tears: Boohoo confirms offer for Karen Millen and Coast online brands
Boohoo today confirmed it has made an offer for the online arms of Karen Millen and Coast fashion retailers.
The digital fashion giant did not say whether the potential acquisition includes any plans for the firms’ bricks-and-mortar stores.
Read more: 1,000 jobs at risk as Boohoo set to acquire struggling Karen Millen
Up to 1,000 jobs could be lost at Karen Millen in any tie-up with Boohoo, Sky News reported last night, as the firms negotiate over a pre-pack administration.
“The board confirms that it has made an offer to acquire the online business of renowned British brands Karen Millen and Coast, together with all associated intellectual property rights,” Boohoo said today.
“The group believes that the online business of these brands would represent highly complementary additions to its scalable multi-brand platform and extend the group’s offer as part of its vision to lead the fashion e-commerce market globally.”
Karen Millen suffered a £1.4m loss last year despite sales of £162m in the year to February 2018.
The brand’s Icelandic owners put it up for sale in June in a six-week process being led by Deloitte.
Negotiations continued into the late horus last night, according to Sky. The deal is set to be finalised when Deloitte officially becomes Karen Millen’s administrator.
Broker Shore Capital said the move makes sense for Boohoo as the retailer grows its brand family.
“Boohoo was always looking to potentially add to its stable of brands. Comparisons could be made with Inditex who operate eight brands,” Shore said.
“Boohoo currently has four brands trading today (Boohoo, Pretty Little Thing, Nasty Gal and Miss Pap). We will watch developments with interest.”
Liberum added that the acquisition could prove to be a “savvy move” by Boohoo.
Read more: How Boohoo bucked the high street gloom to record soaring revenue
“It would add a further strand to the group’s multi-brand, multi-geography platform, that we believe can be thought of as a more embryonic online Inditex-type model,” it said.
“Karen Millen, in particular, would also bring a slightly older and higher price point shopper into the group fold to extend the overall offer.”
Main image credit: Getty