THERE is further uncertainty over the future of Hereford's Old Market Debenhams unit this morning after an online fashion retailer bought the brand.

Online fashion retailer Boohoo has confirmed it has bought the Debenhams brand for £55 million and will relaunch the department store as an online-only operation.

Bosses said the deal will not include saving Debenhams’ stores which will close for good as part of a structured winding down of the business, meaning that up to 12,000 jobs are at risk.

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Debenhams products will be sold by Boohoo from early next year, allowing enough time for liquidators to continue closing the retailer’s sites once they are allowed to reopen after Covid-19 lockdown restrictions are lifted.

The business, which was badly hit by the coronavirus pandemic, called in the administrators last year as profits fell.

Sports Direct founder Mike Ashley had been in talks with Debenhams to save the department store’s UK’s operations, but his takeover offer was rejected.

Boohoo, which has already bought Oasis, Coast, and Karen Millen, said the deal represents a “fantastic opportunity” to target new customers and launch into the beauty, sports and homewares market for the first time.

The company highlighted how Debenhams has six million beauty shoppers and 1.4 million Beauty Club members.

It said: “The group intends to rebuild and relaunch the Debenhams platform, helping further the group’s stated ambition to lead the fashion eCommerce market, and grow into new categories including beauty, sport and homeware.”

In hints that it intends to take on the might of Amazon, Boohoo said it would create the UK’s largest marketplace across fashion, beauty, sport and homeware – expanding the range of products sold via Debenhams marketplace by maintaining current third party relationships and expanding further.

Debenhams’ own fashion brands will also be absorbed into Boohoo’s current portfolio and sold via the Debenhams website.

Boohoo chief executive John Lyttle said: “The acquisition of the Debenhams brand is an important development for the group, as we seek to capture incremental growth opportunities arising from the accelerating shift to online retail.”