18th Feb 2026 19:26
(Alliance News) - boohoo Group PLC on Wednesday said it is launching a fundraise of around GBP35 million, after concluding talks with its lending syndicate and "in light of substantial indicative demand from investors".
The fundraise includes a placing and direction subscription. The online fast fashion retailer, that trades under the Debenhams name, said 194.4 million shares will be issued at 18 pence each.
The price is a 5.3% discount to its 19p closing price on Tuesday.
Shares in the company fell 2.1% to 18.50p each in London on Wednesday. It had closed down 16% on Tuesday after it confirmed it was preparing an equity raise.
"Net proceeds of the fundraise are intended to create additional liquidity which, in turn, will deliver improved covenant amendments. This will provide greater financial flexibility as the group works to deliver its turnaround and associated growth plan," boohoo said on Wednesday.
boohoo said Chief Executive Officer Dan Finley and directors Mahmud Kamani and Iain McDonald will all participate in the placing.
boohoo on Tuesday confirmed its guidance for GBP50 million in adjusted earnings before interest, tax, depreciation and amortisation for the financial year that ends on February 28. This would be up 20% from GBP41.6 million in financial 2025. boohoo also said it is confident of double-digit-percentage adjusted Ebitda growth in financial 2027.
boohoo said its turnaround plan is "going apace", reducing its annual fixed cost exit rate to GBP135 million from GBP175 million. It said it is on track to reduce this further to GBP100 million.
It said all brands are now trading profitably. In addition to boohoo and Debenhams, these include Karen Millen and Pretty Little Thing.
By Eric Cunha, Alliance News news editor
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