- Friday, April 26, 2024
By: Radhakrishna N S
INDIAN origin Mahmud Kamani led Boohoo has acquired the online business and all intellectual property rights of Karen Millen and Coast in an £18.2 million deal.
The latest move by the British online fashion retailer raises fears for hundreds of jobs in the UK’s two women’s clothing retailers.
The manchester-based fashion retailer said it would retain all 125 staff who work in the online operations.
The two British fashion retail brands were put up for sale by owner, Kaupthing. The pre-pack administration allows the purchaser to cherry-pick parts of a business.
Business services firm Deloitte is handling the sale process. It said: “Karen Millen and Coast will continue to trade in store for a short time whilst the administrators realise the other assets of the companies.
Amid turbulent retail market situation in the UK, akin to many high street retailers, Karen Millen has suffered from weaker consumer confidence, higher stocks, cost inflation, decreasing footfall, and complex global operation in a competitive market condition.
The Karen Millen holding company recorded a loss of £5.7m in 2018, after losing £11.9m during the previous financial year.
Karen Mille functions in 65 countries and employs 1,700 staff globally. The brand has 57 stores in the UK, with concessions at John Lewis and Selfridges.
Acquiring the online operations of the two businesses “would represent highly complementary additions”, said Boohoo commenting on its acquisition.
Chief executive, John Lyttle was quoted by Sky: “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.”
Boohoo is the booming online fashion retailer when other fashion retailers were struggling to survive amid tough market conditions in the UK.
In June, Boohoo recorded a 39 per cent rise in sales during the quarter ended in May.
Manchester-based Boohoo’s market value was £2.7 billion on Monday (5).
