- Thursday, April 18, 2024
By: Radhakrishna N S
BRITISH online fashion retailer, Boohoo has made an offer to purchase the online business of the UK based women’s clothing brands- Karen Millen and Coast.
Acquiring the online operations of the two businesses “would represent highly complementary additions”, said the Indian origin Mahmud Kamani led fashion firm.
Kamani’s business added that there was no guarantee that any agreement would be done.
In its statement, Boohoo noted that it had “made an offer to acquire the online business of renowned British brands Karen Millen and Coast, together with all associated intellectual property rights”.
The fashion retailer said that its offer was a part of a move “to lead the fashion e-commerce market globally”.
Over a month ago, the Karen Millen was put up for sale by its owners, Kaupthing Bank.
The Karen Millen holding company recorded a loss of £5.7 million in 2018, after losing £11.9m during the previous financial year.
Deloitte was hired as advisers over a month ago and it was immediately decided that a sale was the best option for struggling Karen Millen.
Boohoo’s offer is preferred at this moment after Karen Millen received a number of bids.
Kamani and Carol Kane founded firm did not provide any information about whether the potential agreement involves any arrangements for the two retailers’ physical stores and the future of staff employed in those High Street locations.
Sources told Sky: “The firms were being bought through a process called pre-pack administration, which would be initiated once Deloitte had been appointed as administrator to Karen Millen.”
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.
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), and shares rose by 1.2 per cent in early trading on Tuesday (6).
