Boohoo Group announces CEO John Lyttle’s departure amidst securing a £222 million refinancing deal for its strategic growth.
- The company aims to enhance financial stability with a new debt facility including a £125 million revolving credit line.
- Boohoo plans a review of its business divisions to maximise shareholder value, with notable brands like Debenhams and Karen Millen involved.
- Despite a decrease in revenue and gross merchandise value this year, Boohoo projects improved financial performance later.
- Executive Chairman Mahmud Kamani acknowledges Lyttle’s contributions and emphasises future sustainable growth for Boohoo.
Boohoo Group has announced the upcoming departure of its CEO, John Lyttle, after a five-year tenure. This news coincides with the company’s arrangement of a £222 million debt refinancing deal designed to support its planned phase of development, highlighting the company’s evolving strategy.
The new debt facility comprises a £125 million revolving credit line set to mature in October 2026, and a £97 million term loan due by August 2025. This deal, organised with Boohoo’s existing banking partners, is intended to consolidate financial resources by reducing overall interest costs and strengthening the group’s fiscal stance.
In a strategic move, Boohoo is set to conduct a review of its business divisions, including Debenhams, Karen Millen, and fast fashion labels like PrettyLittleThing and boohooMan. The goal is to optimise and potentially restructure these units to enhance and maximise value for shareholders.
The company has faced financial challenges in the past half-year, with a reported 7% decline in gross merchandise value to £1.177 billion and a 15% drop in revenue to £620 million. Adjusted EBITDA also fell, representing 3.4% of revenue. Nevertheless, Boohoo is optimistic about an upturn in financial performance in the latter half of fiscal year 2025, spurred by projected growth in both GMV and adjusted EBITDA.
Group Executive Chairman, Mahmud Kamani, expressed satisfaction with the new lending facility, acknowledging the support and confidence of existing banks in Boohoo. He underscored the transformation of Boohoo’s business offering beyond young fashion, committing to exploring corporate structure adjustments aimed at maximising shareholder value. Kamani also recognised John Lyttle for assembling a strong leadership team poised to spearhead sustainable growth.
Boohoo is poised for strategic advances amidst leadership changes, aiming for financial recovery and growth.
