Boohoo buys iconic brands in £18m deal
Online fashion business Boohoo, which has a major distribution operation in Burnley, has bought two renowned British brands out of administration in a deal worth £18.2m.
It has announced it has completed an asset purchase agreement for Karen Millen and Coast. The brands were recently put up for sale by Icelandic bank Kaupthing.
Boohoo has acquired the online business and all associated intellectual property rights from the administrators. The deal has been funded by its existing cash resources.
In a statement Boohoo said: “The group believes that the online business of these brands are highly complementary additions to its scalable multi-brand platform and their acquisition extends the group’s offer as part of its vision to lead the fashion e-commerce market globally.
“In its most recent financial year to February 2019, unaudited management information shows that direct online sales from the websites of Karen Millen and Coast totalled £28.4m.”
Boohoo chief executive John Lyttle (pictured) said: “The acquisition of the online business of two great and renowned British brands in Karen Millen and Coast represents another milestone in the group’s growth story as it continues to invest in its scalable multi-brand platform and gain further share in the global fashion e-commerce market.”
The acquisition of the online business of two great and renowned British brands represents another milestone in the group’s growth story
Founded by Karen Millen and Kevin Stanford in 1981, Karen Millen is known globally for creating “beautifully crafted fashion for confident women who know their own style”.
Coast was founded in 1996 with the belief that “life is for living, fashion should be fun and dressing up is for every day”.
Boohoo already operates a number of well-known fashion brands, including PrettyLittleThing, Nasty Gal and Miss Pap.