Boohoo CEO John Lyttle resigns following a significant decline in overseas sales.
- Overseas sales drop by 18% in the US and 21% in other regions.
- Boohoo’s revenue struggles against rival Chinese firm Shein.
- New financial strategies include securing a £222m debt facility.
- Exploration of strategic options to enhance shareholder value is underway.
John Lyttle, the CEO of Boohoo, has announced his resignation after the company reported a substantial decline in its overseas sales. This exit comes as the British e-commerce giant grapples with financial challenges, including a significant fall of 18% in the US markets and 21% in other regions outside the UK.
During Lyttle’s five-year tenure, Boohoo experienced a sharp decline in share value, plummeting by approximately 90%. While addressing this downturn, Lyttle expressed pride in leading the group and commitment to collaborating with the Board to enhance shareholder value as a successor is sought.
Boohoo’s turnover has been notably eclipsed by Chinese competitor Shein, which has reported a remarkable revenue surge in the UK. As Shein plans for a London IPO, its growing dominance poses additional challenges for Boohoo in an already competitive market.
In response to these challenges, Boohoo has secured a substantial £222 million debt facility. This encompasses a £125 million revolving credit facility valid until October 2026 and a £97 million term loan due by August 2025. The interest savings from this facility compared to previous agreements underline Boohoo’s strategic financial adjustments.
The company is actively exploring various strategic options to unlock potential shareholder value. Potential moves include the disposal of parts of its brand portfolio or considering delisting or an overseas listing, although specific strategies remain undisclosed at this stage.
Boohoo faces a challenging path ahead as it navigates financial strategies and competitive pressures.
