Boohoo Group has successfully repaid £50m of its existing £97m term loan.
- This repayment was made possible by a £15.3m injection from the Kamani family, founders of Boohoo Group.
- The family’s contribution included funds from Mahmud Kamani, Rabia Kamani, Samir Kamani, and Umar Kamani.
- Earlier, Boohoo organised a fundraising round raising £39.3m through various means.
- CEO Dan Finley confirmed the loan repayment was part of Boohoo’s strategic initiatives to cut down on stock and maximise shareholder value.
Boohoo Group has repaid £50m of its £97m term loan, an important milestone in its ongoing financial restructuring efforts. The repayment was facilitated by a significant cash injection of £15.3m from the Kamani family, pivotal figures in the organisation’s history. This familial support underscores their commitment to the group’s recovery and future prosperity.
The Kamani family’s financial assistance was substantial, with Mahmud Kamani contributing £5.1m, Rabia Kamani providing £1m, Samir Kamani offering £6.2m, and Umar Kamani contributing £3m. This infusion of capital highlights the founding family’s intent to bolster Boohoo Group’s financial health amidst challenging market conditions.
Previously, Boohoo initiated a fundraising effort, successfully generating up to £39.3m through a blend of placing, subscription, and retail offers. This effort was timely, as the group had reported a pre-tax loss of £147.3m for the half-year ending 31 August 2024. Such measures were integral for the company to regain financial stability.
Dan Finley, appointed as CEO on 1 November, conveyed his satisfaction in announcing the repayment. He emphasised that the funds acquired from the placing, alongside efforts to reduce stock levels, were indicators of Boohoo’s strategic shift towards becoming a more efficient and value-focused entity. Finley’s leadership and the recent financial manoeuvres reflect a clear direction towards ensuring the company’s sustainability.
Boohoo Group’s efforts to stabilise its finances signal a promising shift towards long-term growth and sustainability.
