The Boohoo Group is continuing its expansion after acquiring the IP and e-comms business of Karen Millen and Coast. It's only a matter of months since the group acquired e-tailer MissPap for an undisclosed sum after its shareholders voted to wind the company up.
The future looks much less certain for the 32 bricks and mortar stores and those employed outside of the e-comms business.
This is another reminder of the widening gap between e-comms businesses and the troubles faced by traditional bricks and mortar stores. It's also another signal of intent from the Boohoo Group in terms of its ambitions in the world of fashion e-comms.
Boohoo bought the online arm and all associated IP rights for the retailers for £18.2m in a pre-pack administration. A total of 62 immediate redundancies have been made. Boohoo said: “The group believes 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 ecommerce market globally.” Karen Millen and Coast currently have a London head office, 32 stores and operate through 177 concessions in the UK, employing around 1,100 people in total in the UK. The international arm of the business will continue trading in the short term.