Boohoo Group has embarked on a strategic transition with a new £222 million debt financing plan.
- CEO John Lyttle has announced his departure amidst the company’s financial restructuring.
- The agreement includes a £125 million revolving credit facility and a £97 million term loan.
- Boohoo’s revenue in H1 2025 fell by 15% amid these changes.
- The group anticipates improved financial performance in the latter half of FY25.
Boohoo Group, known for its prominent fashion brands such as PrettyLittleThing and Nasty Gal, has initiated a financial strategy marked by a new £222 million debt financing agreement. The company aims to utilise this for the next stage of its development post an H1 25 financial loss.
Amidst navigating these fiscal shifts, CEO John Lyttle has decided to step down. He, however, expressed his commitment to collaborating with the leadership team until a successor is identified, emphasising the company’s potential and his dedication to enhancing shareholder value.
The newly secured financing comprises a £125 million revolving credit facility valid until October 2026 and a £97 million term loan due by August 2025. This agreement reflects the continued support from Boohoo’s existing banking relationships.
During the first half of 2025, Boohoo Group experienced a 15% year-on-year decline in revenue, amounting to £620 million. Its EBITDA margin also dropped to 3.4% from the previous 4.3%, alongside a 7% decrease in Gross Merchandise Value (GMV), which stood at £1.177 billion.
Despite these downturns, the group remains optimistic about the second half of FY25, forecasting increased GMV and a stronger adjusted EBITDA performance. This outlook is anticipated despite ongoing investments designed to unlock further shareholder value.
Boohoo Group’s strategic efforts are poised to navigate its current challenges, aiming for financial recovery and growth.
