Fashnopsis:
- Boohoo Group PLC, a fast fashion giant, is considering breaking up its business.
- Shareholders are urging the company to spin off or sell successful brands like Debenhams and Karen Millen.
- Co-founders Mahmud Kamani and Carol Kane are exploring various options for restructuring the business.
- While the company’s core brands showed improved performance in the second half of the year, overall sales declined by 13%.
- Despite the challenges, Boohoo’s CEO remains optimistic about the company’s future.
Fast fashion giant Boohoo Group PLC is reportedly exploring a potential breakup of its business, as shareholders urge the company to spin off some of its most successful brands.
Sources familiar with the matter told The Times that there is significant value in divesting brands like Debenhams and Karen Millen, which could help boost Boohoo’s stock price, which has plummeted by over 85% in the past five years.
While the exact details of the potential split remain uncertain, co-founders Mahmud Kamani and Carol Kane are reportedly considering all options, including the sale of other brands such as Boohoo and PrettyLittleThing.
Boohoo has been grappling with declining sales in recent years, with group GMV falling by 13% to £1.809 million in the fiscal year 2024. However, the company remains optimistic about the future of its core brands, which saw a sales decline improve from -9% in the first half of the year to -4% in the second.
John Lyttle, Boohoo Group CEO, commented on the annual trading update, saying, “Despite challenging market conditions, we made continued progress in the year. I am particularly encouraged by the ongoing improvement in our core brands.”
Image Source: Boohoo
