Manchester-based online fashion retailer Boohoo will buy the online businesses of Oasis and Warehouse brands for £5.25 million. In April, Oasis and Warehouse went into administration.
The brands were forced to shut their 90 UK stores in March because of the Covid-19 lockdown, which also closed its 437 concessions in department stores including Debenhams and Selfridges.
According to reports, the previous owner had been in talks to sell the businesses before the Covid-19 crisis, but could not find a buyer. Later, the brand and stock were bought by Hilco Capital, which has now sold them on to Boohoo.
Boohoo made the announcement as it said online sales rose by 45 per cent in the three months to May, partly boosted by demand for athleisure items during lockdown.
Founded in 2006 by Mahmud Kamani and Carol Kane, Boohoo expanded its operations quickly, listing its shares in 2014. It sells fashion, beauty and products and shoes aimed at 16 to 24-year-olds. The firm also owns PLT and Nasty Gal. Earlier in 2020, it bought struggling brands MissPap, Karen Millen and Coast.
Boohoo recently said that the sales of loungewear and “athleisure” had done well during lockdown as customers adapted to a “stay-at-home lifestyle”.
Worldwide sales were £368 million in the quarter to May. In the UK, which accounts for half of its total revenue, sales were up 30 per cent to £183 million.
According to Boohoo, ‘flexible supply chain’ and ‘social media campaigns’ were the growth drivers for the company.
Recent research by polling firm YouGov in May revealed that 11 per cent of 18 to 24-year-olds had purchased something from Boohoo for themselves in the previous three months.