Boohoo’s planned £60 million sale of its London head office has unexpectedly collapsed.
- The deal was called off after an Israeli investor withdrew due to survey concerns.
- Boohoo had listed its Soho office for sale to address looming debt obligations.
- The company had initially purchased the office in 2021 for £72 million.
- Active negotiations continue as Boohoo seeks alternative buyers.
Boohoo has encountered a significant setback following the collapse of its £60 million sale of the company’s London headquarters. According to reports, an Israeli investor decided to withdraw from negotiations to buy the fashion retailer’s office located in Soho. The decision came after concerns were raised following a survey of the property.
The office at 10 Great Pulteney Street, which spans 43,963 square feet across six storeys, was initially placed on the market in August. This move was part of Boohoo’s strategy to manage a £47 million debt due next August. The retailer had initially acquired the building in 2021 at a cost of £72 million, meaning the sale would potentially result in a financial loss for the company.
As the news of the failed sale surfaced, a Boohoo spokesperson mentioned that the company remains active in its negotiations for the sale of its London office. The company has been searching for new buyers to help alleviate the financial pressures brought on by the impending debt deadline.
Meanwhile, Boohoo’s internal dynamics are also under the spotlight, with shareholders expected to vote on board appointments. The company seeks to resolve its ongoing controversy with Frasers over board memberships, which includes a motion to appoint Mike Ashley and restructuring expert Mike Lennon to the board.
Boohoo continues to face financial and strategic challenges as it navigates both property sales and boardroom disputes.
