News that Booohoo is to rebrand its business to Debenhams Group has been met with mixed reactions.
Now operating as a marketplace-based model, Debenhams, which was acquired by Boohoo out of administration, has been largely turned around and is said to now be a majority contributor to group profitability.
Boohoo has something of a tarnished reputation having been subject to widespread adverse publicity in respect of its treatment of suppliers as well as its former reliance on employee exploitation within its supply chain to keep product costs down. Whilst the business says it has tightened up its controls and had opened a ‘model’ production unit of its own in Leicester – only to close and sell if off – mud tends to stick, and it has come under increasing competition from the likes of Shein and Temu. In fact the lower end of fast fashion has proved to be a millstone for many players as growing numbers of consumers are now opting to buy less and are more inclined to seek out better quality items, with brand reputation for sustainability becoming an ever-increasing factor.
Perhaps the rebrand will provide the Boohoo business with new momentum under its group CEO, Dan Finley, who replaced John Lyttle recently.
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