Nottingham will see the closure of its last remaining Dorothy Perkins and Burton store, following the purchase of Wallis together with these two brands by online retailer Boohoo. The loss of the store on Beastmarket Hill is the latest closure in a period of rationalisation which has already seen Nottingham city centre lose its branches of Debenhams and River Island.
A Blow To The City
With Lister Street’s branch of WH Smith also facing the axe in the near future, the closure of the Dorothy Perkins and Burton store signals a continuing downturn for Nottingham as a retail centre. The loss of these shops has been attributed to reasons including a reduction in footfall, but East Midlands Chamber chief executive Scott Knowles bemoans the news as “another blow to the city.” This sentiment is echoed by the union UDSAW, which has described the latest closure as another “devastating blow” for Britain’s high streets.
Whilst around 260 of those currently working for Dorothy Perkins, Wallis and Burton will continue to be employed, these are likely to be primarily head office roles in areas such as merchandising and design, as the £25.2 million pound deal made between Arcadia and Boohoo concerns only the group’s digital assets, and not the retail stores. This means that the buyout will see approximately 2,450 jobs lost across the country.
The Boohoo Deal
The £25.2 million deal sees Boohoo take on yet more of the UK’s high street stalwarts. Following on from its successful acquisition of Debenhams for £55 million, Boohoo continues to demonstrate its interest in remaining a multi-brand online retailer, with the shops themselves discarded.
The other brands from the Arcadia stable have faced a similar fate, with Topshop, Topman and Miss Selfridge purchased for £330 million by the e-commerce company ASOS. Since the Arcadia Group entered administration in December of last year, its administrators have raised over £500 million from the sale of its brands.
Boohoo chief executive John Lyttle was keen to emphasise the positive benefits that should come from the purchase, saying “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.”
Hope For The Future
However, despite the undoubtedly difficult news that this new closure will represent for employees of the now-defunct Dorothy Perkins and Burton stores, there is hope on the horizon. Scott Knowles suggested that the situation “will help us to deliver the investment, jobs and economic growth we need to enable these centres of commerce to thrive once more.”
There are opportunities for newly redundant staff to retrain, too, with key economic growth areas such as digital technology currently experiencing a shortage of people with the right skills. Similarly, there is a need for more people to work in green industry roles, which look likely to become a major employer in the future.
