Boohoo’s plan to sell its London head office for £60m has been thwarted.
- The intended sale was aimed at addressing a £47m debt due next year.
- An Israeli investor withdrew from the purchase following survey concerns.
- Boohoo previously acquired the office for £72m in 2021, indicating a potential financial loss.
- Shareholders are preparing to vote on significant board appointments shortly.
The British retailer Boohoo has faced a setback in its strategy to offload its London head office, initially listed for £60 million. This move was part of the company’s broader efforts to manage a looming £47 million debt by August of the following year. However, the transaction has stalled due to an Israeli investor retracting their interest, reportedly over issues surfaced in a property survey.
The prime Soho located office, at 43,963 square feet, was acquired by Boohoo in 2021 for £72 million. This suggests that the fashion giant might incur a financial loss from the intended sale, yet they remain engaged in discussions with potential buyers. A company spokesperson confirmed active negotiations continue as they explore all feasible options to finalise the sale.
Beyond this property saga, Boohoo faces a critical shareholder meeting set for 20 December. Key agenda items include resolving tensions with Frasers over board appointments, specifically the consideration of integrating Mike Ashley and restructuring expert Mike Lennon into its management fold. This vote aligns with Boohoo’s ongoing restructuring and strategic effort to maintain its competitive edge amidst industry challenges.
The aborted sale of Boohoo’s headquarters underscores ongoing strategic adjustments and financial challenges facing the retailer.
