Boohoo Group CEO John Lyttle will step down as the company secures a strategic £222 million refinancing deal.
- This financial arrangement includes a £125 million revolving credit line and a £97 million term loan.
- The refinancing is intended to enhance Boohoo’s financial position by reducing interest costs.
- The company plans to undertake a review to optimise shareholder value across its divisions.
- Despite a recent decline in revenues, Boohoo expects improved financial performance in the next fiscal period.
Boohoo Group has announced the upcoming departure of its CEO, John Lyttle, coinciding with a significant financial development. The company has secured a £222 million refinancing agreement, a move seen as pivotal for its “next phase of development.” This arrangement involves existing banking partners and comprises a £125 million revolving credit line set to mature in October 2026, alongside a £97 million term loan expected to mature by August 2025. This strategic financial manoeuvre is purposed to reduce overall interest expenses, thereby bolstering the group’s financial stance.
The board of Boohoo has simultaneously revealed intentions to conduct a comprehensive review of options for its various divisions, including Debenhams, Karen Millen, and its fast-fashion brands such as PrettyLittleThing and boohooMan. This initiative aims at maximising shareholder value amidst what the board describes as a transformative period for the group. Corresponding to this strategic shift, Chairman Mahmud Kamani expressed confidence in the support from existing banks, underscoring the lenders’ confidence in Boohoo’s evolved business model, which now extends beyond its initial focus on young fashion.
In a recent trading update covering the six months ending 31 August, Boohoo reported a decline in gross merchandise value (GMV) and revenues, with GMV falling 7% to £1.177 billion and revenue dropping 15% to £620 million. However, the company remains optimistic about its financial trajectory, anticipating growth in both GMV and adjusted EBITDA in the second half of the fiscal year 2025. The group has notably seen expansion within the Debenhams marketplace, adding 5,000 brands during the period, even as its youth-focused brands continue to grapple with external challenges.
Mahmud Kamani complemented John Lyttle on his contributions to Boohoo Group, noting that while a successor is yet to be appointed, Lyttle leaves behind a robust leadership team. Kamani stated, “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’s strategic refinancing and leadership transition mark a pivotal phase in its ongoing evolution and pursuit of sustainable growth.
