// Boohoo buys Oasis & Warehouse’s online and IP business for £5.25m from Hilco Capital
// Oasis & Warehouse Group went into administration in April, but all its stores shut down as Hilco only acquired parts of the business
// Boohoo also reveals strong results in its first quarter trading update
Boohoo has acquired the online businesses and all associated intellectual property of Oasis and Warehouse in a deal worth £5.25 million from Hilco Capital.
The Oasis and Warehouse Group shut down all stores and concessions at the end of April, after administrators failed to find a buyer, resulting in the loss of 1803 jobs.
However, Oasis and Warehouse Group’s intellectual property and the company’s stock to restructuring expert Hilco Capital, but Hilco had decided not to buy the rest of the business.
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With Boohoo Group now acquiring these from Hilco, Oasis and Warehouse will now join a growing portfolio which includes PrettyLittleThings, Nasty Gal, MissPap, Karen Millen, Coast and the eponymous Boohoo.
Unaudited management information shows that Oasis and Warehouse generated direct online revenues of £46.8 million for the year ending February.
The acquisition was announced amidst Boohoo’s first quarter trading update, where performance was very strong despite plunging consumer sentiment and fashion spending due to the coronavirus pandemic.
For the three months to May 31, total revenue was up 45 per cent year-on-year to £367.8 million, while revenue in its home UK market alone increased 30 per cent to £183 million.
Boohoo Group’s performance in the US was strongest though, with quarterly sales surging 79 per cent year-on year to £92 million.
Meanwhile, in its Rest of Europe market quarterly sales jumped 66 per cent to £63.4 million while its Rest of World sales grew 22 per cent year-on-year to £29.4 million.
Boohoo Group said there was strong underlying growth across its Boohoo, Pretty Little Thinkgs and Nasty Gal fascias, while its newer brands – MissPap, Karen Millen and Coast – have performed well after being successfully integrated onto the company’s scalable platform last year.
Oasis and Warehouse are expected to be integrated over the coming months.
Boohoo Group said it entered the year with sustained momentum from a strong finish to its previous financial year.
Trading in the middle of March through to early April was mixed, as a result of the impact of the Covid-19 pandemic, but performance across all of its brands and markets improved throughout April, with a robust performance delivered in May.
During the period, Boohoo Group purchased the remaining 34 per cent minority stake in PrettyLittleThing from its minority shareholders.
The online retail giant also completed a £197.7 million equity fundraising to finance further acquisitions.
Boohoo said it expected to deliver strong profitable growth ahead of market expectations for the current year.
Full year revenue growth is forecast at 25 per cent, with an adjusted EBITDA margin of 9.5 per cent to 10 per cent.
”During unprecedented and challenging times, the Group has delivered a very strong trading and operational performance,” chief executive John Lyttle said.
“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 ecommerce market globally.”
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