ASOS News Update: Boohoo Looks to Sell
ASOS news update: Major online competitor to ASOS, Boohoo look to sell the business after six years in operation. These are rival online clothes suppliers.
With online shopping at an absolute peak in terms of ease and options there is stiff competition for one of the prime markets in the UK – 15-24 year olds. ASOS, ‘As Seen On Screen’ is a major competitor for offering high fashion clothes at a discounted cost and an additional discount if you have a student card. There are many competitors though and Boohoo is just one of many internet based businesses trying to better ASOS with the service they offer.
“The online clothing retailer Boohoo is considering a sale of the business, following strong growth since it was founded seven years ago.
Boohoo has hired the private equity and advisory firm Zeus Capital to explore its strategic options, including a possible sale.
The Manchester-based company competes with the internet clothing giant Asos, although the latter’s revenues currently dwarf those of Boohoo.
Zeus Capital’s advisory arm is understood to have already sounded out potential investors about their interest in acquiring Boohoo or buying a minority stake in the business.
Boohoo grew its pre-tax profits by 79 per cent to £248,790 over the year to 29 February 2012, according to its latest accounts, on sales up strongly to £29m.
The retailer is currently advertising heavily on London’s Underground and is thought to have grown its bottom line strongly for the financial year just ended.
Boohoo’s chief executive Mahmud Kamani set up the business with co-chief executive Carol Kane in 2006, and the online specialist employs about 500 people.
Sources have indicated that Zeus Capital’s private equity arm is also an investor in Boohoo but this could not be verified. Both companies declined to comment.”
ASOS, as well as Boohoo, supply the youth of the UK, to put it succinctly, with a huge choice of clothes. There is the option to buy high end products but there are also good quality, high fashion clothes at a lower cost. The website have tapped into a niche market where they provide – or strive to – provide the students of the UK with the clothes they want to wear to be accepted by their peers while not breaking their already severely damaged bank balances.
For more information on any of the services offered by ASOS contact them via the ASOS helpline. Their customer services department is populated with friendly, helpful employees who are eager to assist you with any enquiry you might have. This article was originally sourced at www.independent.co.uk.
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