John Lyttle, CEO of Boohoo group has confirmed that he intends to exit boohoo after five years and that the business is now seeking his successor.
The decision follows the securing of £222m in debt financing which comprises a £125m revolving credit facility which runs to October 2026, and a £97m short-term loan with a repayment date of August 2025.
Most market watchers appear to be of the view that boohoo will now be working to divest Karen Millen first, followed by Debenhams, leaving it with complete focus on its lower-end fast fashion brands PLT (founded by Umar Kamani), boohoo and boohooMAN on which its fortunes were founded and which together racked up over £1bn gross merchandise value in FY24.
However, boohoo will still have a tough fight on its hands to compete with Shein and TEMU whose modus operandi gives them a distinct advantage. Several pundits believe that the best outcome for shareholders would be for Shein to take the boohoo & PLT brands sooner rather than later. Shareholders include Frasers Group which could well be considering making a move for Karen Millen & Debenhams.
Group executive chairman, Mahmud Kamani said: “The board is focused on ensuring it takes the right steps to drive boohoo Group in the interest of all of its stakeholders.
“We are delighted to have agreed a new lending facility which shows the support of our existing banks and their confidence in the group.
“The business has evolved over the last few years and has an offer that is much wider than our original focus on young fashion. The time is now right to consider options with regard to corporate structure, with the aim of maximising shareholder value.
“I would like to personally thank John for the contribution he has made to the group. John has built a talented and inspiring leadership team who will ensure we are best positioned for sustainable growth.”
boohoo Group’s interim results will be published in November.
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