Warehouse deal ‘to transform Boohoo’ as online retailer looks to increase revenues from £1.7bn to £4bn
Boohoo‘s deal to snap up a giant warehouse in Daventry will be ‘transformational’ for the business, according to a source familiar with the agreement.
The acquisition – first mooted by The Mail on Sunday in February – saves 330 jobs and could add another 400 positions in the short term.
‘Don’t underestimate the impact this will have on the business,’ the source said. The company said it will now be capable of handling £4billion of revenue, up from its current £1.7billion.
New warehouse: Boohoo said it will now be capable of handling £4bn of revenue
The state of the art 1.2million square foot warehouse was completed in 2019 for its former owner, Topshop group Arcadia.
Boohoo has since snapped up Topshop sister brands Dorothy Perkins, Burton and Wallis to sell online.
Jefferies analyst Andrew Wade has reiterated his ‘buy’ rating on the stock with a target price of £5 from £3.44 on Friday.