Boohoo snaps up Oasis and Warehouse online, hailing strong lockdown sales
17 June 2020, 09:44
Oasis Warehouse was placed in administration in April, with the loss of more than 1,800 jobs after a buyer could not be found for the stores.
Fashion retailer Boohoo has snapped up the online businesses of collapsed chains Oasis and Warehouse for £5.3 million as it upped its profit outlook thanks to resilient trading amid the lockdown.
The group agreed the deal with restructuring expert Hilco Capital, which bought the Oasis and Warehouse brands and stock from administrators in April.
Oasis Warehouse Limited was placed in administration in April, with the loss of more than 1,800 jobs after a buyer could not be found for the 92 shops and 437 concessions at department stores.
Boohoo announced the deal as it unveiled “very strong” trading despite the coronavirus crisis, with UK sales surging 30% in the three months to May 31.
It said full-year profit growth is set to beat City expectations, with sales forecast to rise by around 25% in the year to next February in spite of ongoing consumer uncertainty amid the pandemic and heavy discounting.
Shares in Boohoo jumped as much as 11%.
Boohoo, which also bought Karen Millen and Coast’s online businesses from administrators last summer, said it would integrate the Oasis and Warehouse online operations into its platform in the coming months.
“Oasis and Warehouse are two well-established brands in the UK targeting fashion-forward shoppers and are a complementary addition to our portfolio of brands,” Boohoo said.
It comes as Boohoo is planning to capitalise on the shake-up in the retail sector, having raised £197.7 million in an investor cash call last month to “take advantage of numerous M&A (mergers and acquisitions) opportunities that are likely to emerge in the global fashion industry over the coming months”.
Boohoo has so far weathered the Covid-19 crisis better than its high street rivals, with total group revenues rising 45% in the quarter to May 31.
It said sales were impacted by the lockdown from the middle of March to early April, with a “marked” fall in sales initially, though trading improved in April and bounced back strongly in May.
Boohoo shifted its focus towards loungewear and so-called athleisure ranges that have become popular as Britons stayed at home.
John Lyttle, Boohoo group chief executive, said: “During unprecedented and challenging times, the group has delivered a very strong trading and operational performance.
“Whilst there is a period of uncertainty within the markets in which we operate, the group is well-positioned to continue making progress towards leading the fashion e-commerce market globally.”