The longstanding Arcadia high street retail stores, Dorothy Perkins, Wallis and Burton are set to close after its administrators sold its intellectual property assets to the fashion retailer Boohoo in a deal worth £25 million. However, it is believed that despite the online business being purchased, Boohoo will not take on any of the firm’s remaining High Street stores or its workforce, which will result in the permanent closure of 214 UK stores and put about 2,450 jobs at risk.
We are leading experts specialising in insolvency proceedings. Our experienced City of London solicitors and barristers regularly assist companies facing a winding up petition; individuals served a statutory demand; or creditors owed money and considering issuing a winding up petition.
Why did Boohoo buy Dorothy Perkins, Wallis and Burton for £25 million?
Boohoo’s Chief Executive John Lyttle has said:
Acquiring these well known brands in British fashion out of administration ensures their heritage is sustained, while our investment aims to transform them into brands that are fit for the current market environment.
We have a successful track record of integrating British heritage fashion brands on to our proven multibrand platform, and we are looking forward to bringing these brands on board.Boohoo’s Chief Executive John Lyttle
What will happen to Dorothy Perkins, Wallis and Burton‘s high street stores?
All 214 Dorothy Perkins, Wallis and Burton stores will now permanently close, resulting in thousands of high street job losses. In total, 260 employees will transfer to Boohoo to mainly head office functions such as brand design, buying and merchandising, and the digital part of the business.
Why are retailers like Dorothy Perkins, Wallis and Burton struggling?
Many retailers like Dorothy Perkins, Wallis and Burton have being issued with winding up petitions by their commercial landlords to recover unpaid rent. In April 2020, an industry body said that British retailers suffered their biggest fall in sales since the 2008 financial crisis in the first half of April as the pandemic forced store closures.
How can we help you oppose a winding up petition?
As a leading law firm with a track record of success, you can be assured that your matter is in safe hands. Our success rate is a result of the dedication of our lawyers who will diligently review your matter so it has the best possible chance of success from the outset when it matters the most.
If your company is concerned about a winding-up petition or statutory demand from a commercial landlord your company can potentially challenge that petition on the following grounds:
- That the debt alleged in the statutory demand or petition to be owing is genuinely disputed on substantial grounds by your company;
- Your company has a genuine right of set-off against the creditor that exceeds the amount claimed in the statutory demand; or
- In certain other limited circumstances (for example such as jurisdiction, technical or procedural error or delay).
In order to oppose a winding-up petition, you would need to file a witness statement in opposition with the Court no fewer than five business days before the date when the petition will be heard by the Court (rule 7.16 of the Insolvency (England and Wales) Rules 2016). You would also need to provide a copy of that witness statement to the petitioning creditor at least five business days before the hearing.
Your company is entitled to appear at the petition hearing and to oppose the making of a winding-up order. It is usual for companies to instruct solicitors and/or barristers to appear on their behalf at the petition hearing.
Instruct Specialist Insolvency Lawyers
We provide a no cost initial case review to establish whether or not we can help you. We are a specialist City of London law firm made up of Solicitors & Barristers and based in the Middle Temple Inn of Court adjacent to the Royal Courts of Justice. We are experts in dealing with matters surrounding insolvency in particular issues. Our team have unparalleled experience at serving statutory demands, negotiating with debtors/creditors, setting aside statutory demands and both issuing and defending winding up petitions vigorously at the Royal Courts of Justice (Rolls Building), or the relevant High Court District Registry or County Court with jurisdiction under the Insolvency Rules.