Speculation has been mounting about the future for Boohoo but one thing is certain, there is no smoke without fire. The business posted a pre-tax loss of £159.9m for y/e February ’24 when revenue had dropped from £1.77bn to £1.46bn. It is, of course, not alone in finding trading conditions to be tough enough without the increased competition from Shein and Temu. It has also suffered from reputational damage as a result of revelations about it turning a blind eye to its local supply chain which had once included some distinctly unethical garment factories exploiting immigrant workers on our own shores.
Then there are the more recent allegations about Boohoo making unsupported claims about its much-improved supply chain management. The scrutineers will undoubtedly continue to hound the Boohoo business, and any connected with it, long into the future.
All in all, it has not been the easiest of times for any of Boohoo’s senior management.
Now it has been suggested that none other than the disgraced Philip Green is getting involved as the business grapples with mounting debts in a period of continued tough trading. That Green has been called in or has emerged as a potential saviour, raises all manner of awkward questions even given that the extent of his interest has yet to be revealed. Amidst the murmurs, many are asking if he is fronting a consortium which is looking to make a potential bid for the business. The Green family itself is certainly not without funds.
Then, with Frasers Group now holding more shares than Boohoo’s co-founders and keen to continue to acquire brands to add to its stable, one cannot help but consider whether Mike Ashley still wants to take ownership of Debenhams, once and for all. Frasers Group could also benefit greatly from taking Karen Millen.
Shein will certainly also be running an eye over the opportunity to add Boohoo and PrettyLittleThing to its UK operations and may see Boohoo as an easy target.
The plot thickens.
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