Online fashion retailer Boohoo has acquired a majority stake of 66 per cent in fashion brand PrettyLittleThing for £ 3.3 million in a move expected to complement its presence in the UK and internationally.
As per the e-tailer, the remaining 34 per cent will be used to incentivize PrettyLittleThing’s executive team. “PrettyLittleThing was always going to be a natural fit with Boohoo. We believe this is an excellent opportunity to extend the Group’s overall customer appeal through two distinct, complementary brands while further enhancing the Group’s strong growth trajectory,” said Peter Williams, Chairman, Boohoo.
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The transaction follows a 400 per cent jump in revenue to £ 17 million in the year to 29th February 2016 for PrettyLittleThing. The company generated a revenue of £ 19 million in the six months to 31 August, compared to last year’s £ 6.4 million.
Boohoo plans to review and invest in PrettyLittleThing’s operations including its warehousing in FY ’18. Also, the UK-based retailer will have the opportunity to acquire the remaining 34 per cent of the business by 28th February, 2022.
