The closure of more shops in Tayside and Fife has been confirmed.
In the latest blow to the High Street, Dorothy Perkins, Wallis and Burton shops will stay closed after lockdown restrictions lift.
It comes as internet retailer Boohoo acquired the Arcadia brands for £25.2 million.
The deal is for the inventory, e-commerce and digital assets of the businesses.
It does not include the brands’ 214 remaining shops, which will close, according to administrators from Deloitte.
Staff were emailed on Monday morning and will be contacted throughout the day.
Shop closures in Tayside and Fife
- Dorothy Perkins, Abbeygate Centre, Arbroath
- Dorothy Perkins/Burton, High Street, Kirkcaldy
- Dorothy Perkins/Burton, Kingsgate Shopping Centre, Dunfermline
Around 2,450 staff are being told on Monday that their jobs have been lost.
Around 260 jobs, mainly head office roles, will be saved as they move with the brands to Boohoo. These include jobs in design, buying and merchandising, and the businesses’ digital wings.
Some other staff will be kept on during a months-long transition period, Deloitte said.
Internet retailers swoop on High Street names
The deal will see the brands transfer over to online fashion giant Boohoo, whose fortunes have increased as those of its high street predecessors waned.
Last month Boohoo said it had bought the brand and website of department store chain Debenhams for £55 million.
But it did not take on the company’s 118 stores, meaning around 12,000 jobs were likely to be lost.
Last week Boohoo rival Asos, also an online player, signed a £330 million deal to buy Topshop, Topman, Miss Selfridge and HIIT from Arcadia. Again, the stores will shut.
Delight at acquisition
Boohoo chief executive John Lyttle said: “We are delighted to announce the acquisition of the assets associated with the online businesses of the three established brands Burton, Dorothy Perkins and Wallis.
“Acquiring these well-known brands in British fashion out of administration ensures their heritage is sustained, while our investment aims to transform them into brands that are fit for the current market environment.
“We have a successful track record of integrating British heritage fashion brands on to our proven multi-brand platform, and we are looking forward to bringing these brands on board.”
Sad demise of fashion empire
Arcadia was long one of the biggest players on the UK high street, but the Covid-19 pandemic dealt a final blow to the business, which had struggled with a shift in shopping behaviour in recent years.
In December the company, founded by Sir Philip Green, entered administration, putting thousands of jobs on the line.
While the business’s demise has been partly brought about by a shift to online retail, its brands will now continue to live online, after several deals.
Administrators have now sold all of Arcadia’s brands, raising around £500 million to pay off creditors. There is still some property in the portfolio left to sell.
Bloodbath on the High Street
The latest closures follows the struggles of several retail chains during the Covid-19 crisis.
All of Sir Philip Green’s fashion empire Arcadia will close – though its brands will continue online.
This impacts Topshop, Burtons and Dorothy Perkins shops in Tayside and Fife.
Debenhams will close all its stores – it operates from the Overgate Shopping Centre in Dundee, Perth’s High Street and Kingsgate Shopping Centre in Fife.
Edinburgh Woollen Mill exited administration but not before job cuts took place. Sister brand Peacocks also started the liquidation process and Forfar’s Peacocks shop has already closed.
Paperchase also bounced in and out of administration but the threat of store closures remains.
Oasis and Warehouse wound up its retail business in April, with the loss of 1,800 jobs.
Quiz in Kirkcaldy, Size? in Dundee and Phase Eight in Perth all closed last year.
Argos also announced its intention to shut all standalone shops.
Meanwhile companies such as Marks & Spencer and River Island have also cut staff.
