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Boohoo agrees lease at former Arcadia warehouse, helping the fashion firm to expand

Joanna Bourke
·1-min read
<p>Boohoo has seen high demand for products during the pandemic</p> (AFP via Getty Images)

Boohoo has seen high demand for products during the pandemic

(AFP via Getty Images)

A sale of a distribution centre used by Sir Philip Green’s Arcadia Group has been agreed, and the new landlord has leased it to Boohoo.

The joint administrators to the Arcadia Group and various subsidiaries agreed the sale of the Daventry warehouse to property firm Prologis.

The statement on behalf of the administrators said the deal follows a highly competitive sale process.

Following completion, Prologis has reached a separate agreement with Boohoo. The online fashion firm has agreed a long-term lease at the site.

Boohoo said the site will support the group’s expansion, and adds capacity in addition to its existing distribution centres in Burnley, Sheffield and Wellingborough.

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It added: “In aggregate, these sites will give the group net sales capacity in excess of £4 billion.”

Boohoo added that the deal is expected to secure up to 500 jobs and in the future create up to a further 1,000 jobs as capacity increases at the site.

Over 330 Arcadia Group employees based at the Daventry site will transfer to Boohoo.

Boohoo, which has been making efforts to raise standards across its supply chain following reports that emerged last year of alleged low pay and unsafe conditions, is among online retailers to have seen high customer demand during the pandemic.

It saw revenue growth of 40% in four months to December 31. Earlier this year Boohoo agreed to buy the Arcadia brands Burton, Dorothy Perkins and Wallis, but the deal did not include shops.

The AIM-listed group said the new warehouse is scalable and it is expecting to invest over £50 million in the coming years, increasing capacity.

The warehouse is due to become operational in the second quarter of the financial year that started March 1.

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