{"id":19482,"date":"2021-02-16T09:00:00","date_gmt":"2021-02-16T09:00:00","guid":{"rendered":"https:\/\/jdthomson.com\/?p=19482"},"modified":"2022-07-11T09:44:02","modified_gmt":"2022-07-11T09:44:02","slug":"journal-16-boohoo-buying-debenhams","status":"publish","type":"post","link":"https:\/\/jdthomson.com\/journal-16-boohoo-buying-debenhams\/","title":{"rendered":"Journal 16: Will Boohoo buying Debenhams workout?"},"content":{"rendered":"\r\n
Hello everyone<\/p>\r\n\r\n\r\n\r\n\r\n
Today I want to talk to you about Boohoo buying Debenhams and if it was a good idea and what will have to happen for it to succeed.<\/p>\r\n\r\n\r\n\r\n\r\n
Last Monday\u2019s announcement that fashion website Boohoo had bought the Debenhams for the price of \u00a355m. I would like to examine what exactly is it buying and why is it buying it?<\/p>\r\n\r\n\r\n\r\n\r\n
Boohoo is just buying the brand name and its website and nothing else.<\/p>\r\n\r\n\r\n\r\n\r\n
Boohoo has no interest in the 124 Debenhams stores, infrastructure, stock or employees. It just wants the brand.<\/p>\r\n\r\n\r\n\r\n\r\n
Because the administrators of the failed retailer have given up on selling the whole business they accepted the offer for the brand part of the company.<\/p>\r\n\r\n\r\n\r\n\r\n
An Deal Unusual<\/strong><\/p>\r\n\r\n\r\n\r\n\r\n Many people have lumped the Boohoo acquisition of Debenhams with the similar recent acquisition of Topshop by ASOS. But the ASOS deal is far more normal. ASOS will buy the whole company (if the deal goes through) and then ditch the bits it doesn’t want and be left with what they want to keep.<\/p>\r\n\r\n\r\n\r\n\r\n What makes the Debenhams deal unusual is that the acquirer is just buying the brand name and its website.<\/p>\r\n\r\n\r\n\r\n\r\n In many cases, If you total up all the assets that a company owns the brand equity of that company will often exceed a lot of the other company assets or possessions.<\/p>\r\n\r\n\r\n\r\n\r\n What Boohoo is doing is opening there parent company to a new customer base with the Debenhams deal. (But more on this later)<\/p>\r\n\r\n\r\n\r\n\r\nBrand Equity:<\/h2>\r\n\r\n\r\n\r\n